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Corn, Soybean Prices Close Lower Friday

Wheat moves higher.

DES MOINES, Iowa -- On Friday, the CME Group's farm markets close lower.

At the close, the July corn futures finished 2 3/4¢ lower at $3.66 1/2, while December futures finished 1 3/4¢ lower at $3.85.

July soybean futures closed 1¢ lower at $9.56 1/4, November soybean futures settled 1 1/4¢ lower at $9.53 1/4.

July wheat futures closed 1¢ higher at $4.32 1/4.

July soy meal futures ended $1.00 per short ton higher at $315.80. July soy oil futures closed $0.25 lower at 31.71¢ per pound. 

In the outside markets, the Brent crude oil market is $0.20 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 44 points lower.

Jack Scoville, The PRICE Futures Group’s Senior Market Analyst, says that it is a mystery why corn is sagging.

“Maybe it is end of the month trading and nothing more.  We are watching the weather which should be very wet this weekend and also the political news which is also unsettled.  No one doing too much right now.  People are waiting.  But we have a chance to lose some corn and wheat acres, this weekend, from the weather talk. So, the downside should be limited,” Scoville says.

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Thursday's Grain Market Review

DES MOINES, Iowa -- On Thursday, the CME Group’s farm futures markets closed slightly higher.

At the close, the July corn futures finished 2 1/2¢ higher at $3.69 1/4, while December futures finished 2 1/2¢ higher at $3.86 3/4.

July soybean futures closed 3/4¢ higher at $9.57, November soybean futures ended 1/2¢ higher at $9.54.

July wheat futures finished 4 3/4¢ higher at $4.31 1/4.

July soy meal futures finished $1.10 per short ton higher at $314.80. July soy oil futures closed $0.20 lower at 31.96¢ per pound. 

In the outside markets, the Brent crude oil market is $0.63 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 19 points higher.

On Thursday, the USDA Weekly Export Sales Report showed that soybean sales beat expectations, while corn sales came in at the high end of expectations.

  • Corn= 999,000 metric tons vs. the trade’s expectations of 700,000-1,200,000 mt.
  • Soybeans: 880,400 mt. vs. the trade’s expectations of between 275,000-550,000 mt.
  • Wheat: 367,100 mt. vs. the trade’s expectations of 350,000-650,000 metric tons.

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Wednesday’s Grain Market Review

DES MOINES, Iowa -- On Wednesday, the CME Group’s grain markets lost strength and ended lower.

At the close, the July corn futures finished 5¢ lower at $3.66¾, while December futures ended 4¾¢ lower at $3.84¼.

July soybean futures finished 8½¢ lower at $9.56½; November soybean futures finished 7¾¢ lower at $9.54.

July wheat futures closed ½¢ lower at $4.26½.

July soy meal futures ended $4 per short ton lower at $313.70. July soy oil futures closed 0.31¢ higher at 32.16¢ per pound. 

In the outside markets, the Brent crude oil market is 17¢ per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 36 points higher.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says it is a weather market.

“For corn planting, there is too much rain. For wheat, there is too much cold and too much rain. We might see some limited switching in a couple of weeks if these weather patterns continue,” he says.

“It sure looks like some yield loss is possible due to this wet weather for both corn and wheat; this means planting delays. Planting progress is further along than what USDA says, but there is still plenty of corn to be planted, so some yield loss is possible,” Scoville says.

Wheat prices are up, due to weather, with the rains in Canada and the Northern Plains and a potential freeze event tonight from Kansas to Texas, he says. 

“We will lose a bushel or two anyway, if the cold comes as forecast. Seems like it’s time to look at long grains and short beans,” Scoville says.

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Tuesday’s Grain Market Review

Soybean futures closed lower while grains gained on Tuesday amid conflicting fundamentals and spread trading.

Bearish traders are focused on speedy planting after a government report showed about 17% of the corn crop was in the ground as of Sunday, only 1 percentage point behind the five-year average, according to the Department of Agriculture. Producers, hedgers, and money managers were concerned leading up to yesterday’s Crop Progress report that the pace was still well behind normal, but the USDA note dispelled those fears.

Soybeans were 6% seeded, double the five-year average, the government said. 

Still, there’s hope that demand will strengthen as the U.S. dollar falls to the weakest in four months. The greenback has been dropping steadily, and after leveling this morning, continued its descent and is headed toward its lowest close against a basket of global counterparts since November 10. A weaker dollar generally makes U.S. goods more attractive to overseas importers. 

Analysts also said there was some spread trading occurring with investors selling soybeans and buying grains.

Soybeans lost 6¢ to $9.65¾ a bushel on the Chicago Board of Trade. Soy meal futures dropped $2.40 to $318.20 a short ton, and soy oil declined 0.09¢ to 31.84¢ a pound.

Corn futures for July delivery rose 6¢ to $3.71½ a bushel in Chicago.

Wheat for July delivery added 8¼¢ to $4.27½ a bushel, and Kansas City futures advanced 10¾¢ to $4.25 a bushel in Chicago. 

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