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322195

Soybeans and corn close higher | Monday, December 27, 2021

Futures strengthen on South American weather concerns.

On Monday, the CME Group’s corn and soybean closed sharply higher on South American weather worries while wheat ended lower.

At the close, the March corn futures finished 9¢ higher at $6.14¾. May futures ended 9½¢ higher at $6.16¾. July corn futures closed 9¾¢ higher at $6.15¾. 
 
January soybean futures settled 30½¢ higher at $13.62½. 

March soybean futures ended 30¾¢ higher at $13.71½. May soybean futures closed 30½¢ higher at $13.78¾.

March wheat futures ended 10¾¢ lower at $8.04.
 
January soymeal futures closed $8.70 per short ton higher at $414.80.

January soy oil futures settled 1.28¢ higher at 56.72¢ per pound.

In the outside markets, the crude oil market is $1.89 per barrel higher (+2.56%) at $75.68. The U.S. dollar is lower, and the Dow Jones Industrials are 292 points higher (+0.81%) at 36,243.

On Monday, the CME Group’s corn and soybean closed sharply higher on South American weather worries and while wheat ended lower.

At the close, the March corn futures finished 9¢ higher at $6.14¾. May futures ended 9½¢ higher at $6.16¾. July corn futures closed 9¾¢ higher at $6.15¾. 
 
January soybean futures settled 30½¢ higher at $13.62½. 

March soybean futures ended 30¾¢ higher at $13.71½. May soybean futures closed 30½¢ higher at $13.78¾.

March wheat futures ended 10¾¢ lower at $8.04.
 
January soymeal futures closed $8.70 per short ton higher at $414.80.

January soy oil futures settled 1.28¢ higher at 56.72¢ per pound.

In the outside markets, the crude oil market is $1.89 per barrel higher (+2.56%) at $75.68. The U.S. dollar is lower, and the Dow Jones Industrials are 292 points higher (+0.81%) at 36,243.

On Monday, the CME Group’s corn and soybean closed sharply higher on South American weather worries and while wheat ended lower.

At the close, the March corn futures finished 9¢ higher at $6.14¾. May futures ended 9½¢ higher at $6.16¾. July corn futures closed 9¾¢ higher at $6.15¾. 
 
January soybean futures settled 30½¢ higher at $13.62½. 

March soybean futures ended 30¾¢ higher at $13.71½. May soybean futures closed 30½¢ higher at $13.78¾.

March wheat futures ended 10¾¢ lower at $8.04.
 
January soymeal futures closed $8.70 per short ton higher at $414.80.

January soy oil futures settled 1.28¢ higher at 56.72¢ per pound.

In the outside markets, the crude oil market is $1.89 per barrel higher (+2.56%) at $75.68. The U.S. dollar is lower, and the Dow Jones Industrials are 292 points higher (+0.81%) at 36,243.

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At midsession, soybean contracts are at or above the levels of last summer as traders add a quarter a bushel or more to prices. 

January soybean futures are 28¢ higher at $13.60.  

March soybean futures are 28¢ higher at $13.68¾. May soybean futures are 27½¢ higher at $13.75¾.

“The driving dominant force in the market is South American weather,” says Don Roose of U.S. Commodities in West Des Moines, Iowa. 

Corn futures are also up, with the March contract 7¼¢ higher at $6.13. May futures are 7¼¢ higher at $6.14½. July corn futures are 7½¢ higher at $6.13½. 

March wheat futures are 3¼¢ lower at $8.11½.
 
January soymeal futures are $5.80 per short ton higher at $411.90.

January soy oil futures are 1.89¢ higher at 57.33¢ per pound.

In the outside markets, the crude oil market is $0.38 per barrel higher (+0.51%) at $74.17. The U.S. dollar is lower, and the Dow Jones Industrials are 211 points higher (+0.59%) at 36,162.

With light, post-Christmas trading, futures prices can quickly change direction, says analyst Roose. 

“We’re as good as the next weather forecast, I would say,” Roose adds..

A static high-pressure system over southern Brazil and northern Argentina threatens crop yields as corn goes through pollination and soybeans are in pod fill, he says. But moderate amounts of rain are in the six- to 10-day weather outlook, although some forecasters say it won’t be enough to offset evaporation.

More rain is expected in the next 16 to 30 days.

“By the time that would arrive, it would be too late” to have much affect on yields, Roose says.

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In early trading Monday, the CME Group’s soybean futures are sharply higher as concern over dry conditions in South America continues.

In early trading, the March corn futures are 5¢ higher at $6.10¾. May futures are 5¼¢ higher at $6.12½. July corn futures are 5½¢ higher at $6.11½. 
 
January soybean futures are 16¼¢ higher at $13.48¼.  

March soybean futures are 16¾¢ higher at $13.57½. May soybean futures are 17¢ higher at $13.65¼.

March wheat futures are 1¢ higher at $8.15¾.
 
January soymeal futures are $5.40 per short ton higher at $411.50.

January soy oil futures are 0.52¢ higher at 55.96¢ per pound.

In the outside markets, the crude oil market is $0.21 per barrel lower (-0.28%) at $73.58. The U.S. dollar is lower, and the Dow Jones Industrials are 46 points higher (+0.13%) at 35,997.

Al Kluis of Kluis Commodity Advisors, expects trade estimates for the size of the corn and soybean crops in Brazil and Argentina to move lower again this week. 

“I am watching the projected size of the South American crop move lower as hot dry conditions continue to expand in southern Brazil, northern Argentina, and Paraguay. The temps in Argentina are projected to hit 108°F. this week,” Kluis told customers in a message this morning.

Separately, private exporters reported sales of 269,240 metric tons of corn received during the reporting period for delivery to unknown destinations during the 2021/2022 marketing year, according to USDA’s Foreign Agriculture Service.

The U.S. Department of Agriculture is required by law to publicly release summary sales data obtained from U.S. exporters of many agricultural commodities. More information about the Export Sales Reporting Program, reporting requirements, and marketing years, is available at https://www.fas.usda.gov/programs/export-sales-reporting-program.

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