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Corn, soybean prices diverge | Wednesday, June 9, 2021

The USDA releases its June Supply/Demand Report Thursday.

On Wednesday, the CME Group’s farm markets struggle to fight off crop-friendly weather forecasts.

At the close, the July corn futures finished 10¾¢ higher at $6.90¾. New-crop September futures closed 4¢ higher at $6.32. December corn futures closed ¼¢ higher at $6.09¾. 
July soybean futures closed 17½¢ lower at $15.62¾. August soybean futures ended 16¼¢ lower at $15.23. New-crop November soybean futures finished 8¾¢ lower at $14.48¼.

July wheat futures closed 2¾¢ lower at $6.82¼. 

July soymeal futures closed $3.40 per short ton lower at $386.40.

July soy oil futures finished 0.49¢ lower at 71.59¢ per pound.

In the outside markets, the NYMEX crude oil market is +0.198 lower (-0.27%) at $69.86. The U.S. dollar is lower, and the Dow Jones Industrials are 54 points lower (-0.16%) at 34,545 points.

On Wednesday, the Renewable Fuels Association (RFA) released its weekly report on the ethanol production data provided by Energy Information Administration (EIA).

For the week ending June 4, ethanol production scaled up by 33,000 barrels per day (b/d), or 3.2%, to 1.067 million b/d, equivalent to 44.81 million gallons daily and the highest level since February 2020, according to the RFA press release. Production was 27.5% above the same week last year, which was affected by the pandemic, but it was 2.6% below the same week in 2019. The four-week average ethanol production volume lifted 2.2% to 1.036 million b/d, equivalent to an annualized rate of 15.88 billion gallons (bg).

Ethanol stocks grew to 20.0 million barrels, 1.9% above the prior week and a five-week high. Stocks were 8.4% below the year-ago level and the same week in 2019, according to the RFA.

Al Kluis, Kluis Advisors, says that the corn and soybean prices have slipped after a strong start to the week. 

“The weakness is due to the sell-off in the spring wheat market after weather forecasts brought rainfall to areas of the northern Plains that badly need the moisture. We have not seen much activity in the daily export sales announcements. This time of year is not known for being highly active, but some traders were expecting to see something before the USDA report Thursday,” Kluis stated in a note to customers.  

Kluis added, “Traders are interested to see the monthly USDA report update tomorrow, but are really wanting to see what the USDA’s month-end planted acreage report has to say. If the Thursday report is in line with expectations, then we will quickly resume trading U.S. weather.”

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