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Corn, soybean markets sell off | Wednesday, October 13, 2021

China buys a huge amount of U.S. soybeans Wednesday.

On Wednesday, the CME Group’s farm markets trade mostly lower.

At the close, the Dec. corn futures finished 10¼¢ lower at $5.12. March futures finished 10¢ lower at $5.22. May corn futures settled 9¢ lower at $5.28. 
November soybean futures closed 3¼¢ lower at $11.95. 

Jan. soybean futures finished 4¢ lower at $12.06. March soybean futures closed 4½¢ lower at $12.16.

Dec. wheat futures ended 15¼¢ lower at $7.18.
Dec. soymeal futures closed $1.30 per short ton lower at $311.70.

Dec. soy oil futures closed 0.74¢ higher at 59.59¢ per pound.

In the outside markets, the NYMEX crude oil market is 0.12 lower (-0.10%) at $80.54. The U.S. dollar is lower, and the Dow Jones Industrials are .53 points lower (-0.00%) at 34,377 points.

On Wednesday, private exporters reported sales of:

  • 161,544 metric tons of corn for delivery to unknown destinations during the 2021/2022 marketing year
  • 330,000 metric tons of soybeans for delivery to China during the 2021/2022 marketing year
  • 198,000 metric tons of soybeans for delivery to unknown destinations during the 2021/2022 marketing year      

Bob Linneman, Kluis Advisors, says that local basis prices should be tightening.

“Grain prices were hit hard yesterday after the release of the bearish USDA crop report. The U.S. crop production estimates and ending stocks projections came in much larger than prereport trade estimates. Today the U.S. stock futures market is higher, with crude slightly lower,” Linneman stated in a note to customers.

Linneman added, “China will use this hard down move in soybeans to start buying U.S. soybeans by late this week. China has a history of being a very patient and disciplined buyer in the U.S. grain markets. The export sales report on Tuesday showed a marketing year high for soybean load-out last week. I am watching basis levels in corn and soybeans and the spreads between contract months. Basis is starting to improve. If the bull spreads now start to work, then it will signal that we are approaching the seasonal low in corn and soybeans.”

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