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Corn, soybean prices close double-digits higher | Wednesday, June 2, 2021

Drier weather forecasts underpin the market.

On Wednesday, the CME Group’s soybean market is continuing its rally this week.

At the close, the July corn futures settled 13¾¢ lower at $6.75. New-crop September futures are 8¾¢ lower at $5.93. December corn futures finished 4¼¢ lower at $5.72¾. 
 
July soybean futures ended 14¢ higher at $15.62½. August soybean futures closed 15½¢ higher at $15.16¾. New-crop November soybean futures finished 16¾¢ higher at $14.13¾.

July wheat futures ended 6¢ lower at $6.87½. 

July soymeal futures closed $4.70 per short ton lower at $394.00.

July soy oil futures closed 2.99¢ higher at 70.38¢ per pound.

In the outside markets, the NYMEX crude oil market is +1.14 higher (+1.68%) at $68.86. The U.S. dollar is higher, and the Dow Jones Industrials are 17 points higher (+0.05%) at 34,549 points.

PJ Quaid, independent broker, says that the markets are weakening from improved crop weather.

“Rain has entered some of the forecasts. Also, the crop progress report was bearish. So, when you throw that good weather on top of a 95% planted corn rating, prices will drop,” Quaid says.

Quaid added, “July corn futures are breaking harder than the other months. So, it also looks like slowing corn demand – not drastic, just slowing,” Quaid says.

Bob Linneman, Kluis Advisors, says investors are eyeing the strong crop progress data and assessing frost damage from last weekend.   

“The USDA Crop Progress report showed 76% of the U.S. corn crop rated in good to excellent condition. The report showed soybean planting at 84% complete, just below trade estimates and 17% ahead of the five-year average,” Linneman stated in a note to customers. “Corn ratings almost always start out high and then move lower later in the growing season. Right now, the forecast for dry conditions and some heat in just over 50% of the Corn Belt may begin to affect the USDA corn crop conditions starting next week.” 

Linneman added, “Will the current weather pattern continue? It is too wet south of I-70, somewhat dry north of I-70 up to I-80, and very dry in most of the area north of I-80. Dry weather over the next two weeks will do some damage north of I-80. If it is dry for three or more weeks, then U.S. corn yield potential will start to fall.”

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