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Soybean market rips higher, over $16 level | Tuesday, May 11, 2021

China buys another fresh batch of U.S. corn Tuesday.

On Tuesday, the CME Group’s farm markets close sharply higher amid conflicting crop-weather and positioning ahead of Wednesday’s USDA Reports.

At the close, the July corn futures finished 10¾¢ higher at $7.22¼. New-crop September futures ended 6¢ higher at $6.35. December corn futures settled 2¢ higher at $6.11¼. 
 
July soybean futures closed 27½¢ higher at $16.14. August soybean futures ended 24¾¢ higher at $15.53½. New-crop November soybean futures settled 17½¢ higher at $14.31¼.

July wheat futures closed 11¢ higher at $7.41¾. 

July soymeal futures are $4.70 per short ton higher at $447.00.

July soy oil futures are 0.96¢ higher at 64.80¢ per pound.

In the outside markets, the NYMEX crude oil market is +0.46 higher (+0.71%) at $65.38. The U.S. dollar is lower, and the Dow Jones Industrials are 495 points lower (-1.43%) at 34,247 points.

On Tuesday, private exporters reported to the USDA export sales of 680,000 metric tons of corn for delivery to China during the 2021/2022 marketing year.

The marketing year for corn began September 1.

Jack Scoville, PRICE Futures Group, says that commercial buying is pushing up the grain and soybean markets.

“This is supposed to be commercial buying for end users who are supposed to be nervous about the price action. Those end users are nervous about ending stocks potentials as well as the dry weather down in Brazil and the uneven conditions in the U.S. It’s been another wild one. I don’t think the up move is a real big surprise to anyone, but the timing is just before the WASDE reports tomorrow morning. This type of move was expected after the reports, not before,” Scoville says.

Al Kluis, Kluis Advisors, says that world crop weather impacts on the markets diverge.  

“The dry weather in South America should be supportive, while I look at the U.S. weather as being bearish. The crop is going in at a near-record pace in ideal conditions. The USDA Crop Progress report showed corn planting at 67% complete, just above trade estimates and 15% above the five-year average. The report showed soybean planting at 42% complete, right at trade estimates and 20% ahead of the five-year average,” Kluis stated in a note to customers.  

Kluis added, “The U.S. corn crop is off to a possible trendline or better start. Long-term, the dry conditions in the western and northern Corn Belt are a concern. However, based on the current planting pace and the wet forecasts through the end of May, the potential is in place for very good corn yields in most of the Corn Belt.”

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