Soybean prices close lower Monday

The Dow Jones Industrials surges 681 points.

On Monday, the CME Group’s farm markets close lower, following a double-digits higher start.

At the close, the May corn futures settled 9¾¢ lower at $5.38¾. July corn futures closed 8¢ lower at $5.27¾. New-crop December corn futures closed 2¢ lower at $4.68¾. 
 
May soybean futures finished 13¢ lower at $13.91¼. July soybean futures closed 10½¢ lower at $13.81½. New-crop November soybean futures 3¼¢ lower at $12.19¾.

May wheat futures closed 10¢ lower at $6.50¾. 

May soymeal futures ended $3.10 short term lower at $418.30.

May soy oil futures closed 0.71¢ lower at 49.23¢ per pound.

In the outside markets, the NYMEX crude oil market is -0.78 lower (-1.27%) at $60.72. The U.S. dollar is higher, and the Dow Jones Industrials are 695 points higher (+2.25%) at 31,627 points.

Jack Scoville, PRICE Futures Group, says that the soybean rally was wiped out by South America’s harvest.

“The market is still bullish overall, but the South American harvest will soon hit the ports, and this is hurting the bean market in particular. Corn down on bear spreads not so much on nearby weakness but on new-crop strength that is creating the selling in the nearby. Corn export inspections were really good and there is not a lot left in the countryside, so I suspect it will eventually move higher,” Scoville says. Al Kluis, Kluis Advisors, says that investors will be eyeing the weekly export sales Thursday.

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“Last week, this report showed corn exports at their lowest this marketing year, and the soybean exports at the second-slowest weekly pace this marketing year. Is that just a one-week pause? Perhaps China bought enough ahead to slow down importing corn and soybeans for a few weeks,” Kluis stated in a daily note to customers. 

Kluis added, “On Friday, the sell-off in the grain markets continued. We got news that soybean meal prices were sharply lower in China because of the rapidly expanding problem with African swine fever disease in hogs. With fewer hogs, less feed will be sold. This bombed the corn and soybean markets in China last week, and in the U.S. on Friday. The hard down week in the U.S. and global stock markets also weighed on prices.”

The Risk Management Agency (RMA) will announce the December 2021 corn average at about $4.57, and the November 2021 soybean average price at $11.87, according to Kluis.

“This price is the highest you can lock in using RP crop insurance since 2013. You will also be paying higher premiums this year to lock in higher revenue,” Kluis stated in a daily note to customers.

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