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Soybean Rally Closes Off Of Its Highs Tuesday

Corn turns higher

DES MOINES, Iowa -- On Tuesday, the CME Group’s soybean market finished off of its highs, due to profit-taking.

At the close, the March corn futures settled 1 1/4¢ higher at $3.51, while May futures finished 1¢ higher at $3.67 1/4 per bushel.

January soybean futures finished 4 1/4¢ higher at $10.47 3/4, while March soybean futures closed 4 1/2¢ higher at $10.57 3/4.

March wheat futures finished 1 1/2¢ lower at $4.06 3/4.

January soy meal futures finished $2.40 short ton higher at $321.90. January soy oil futures closed $0.15 higher at 37.82¢ per pound. 

In the outside markets, the Brent crude oil market is $0.93 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 12 points higher.

On Tuesday, private exporters reported to the U.S. Department of Agriculture the following activity:

  • Export sales of 198,000 metric tons of soybeans for delivery to China during the 2016/2017 marketing year. 
  • Export sales of 276,000 metric tons of corn for delivery to South Korea during the 2016/2017 marketing year.
  • Export sales of 378,000 metric tons of soybeans for delivery to unknown destinations. Of the total, 246,000 metric tons are for delivery during the 2016/2017 marketing year and 132,000 metric tons are for delivery during the 2017/2018 marketing year.

The marketing year for corn and soybeans began September 1.

Jack Scoville. The PRICE Futures Group’s Senior Market Analyst, says the rally is based on the soybean demand from a buyer that was thought to be concentrating on South America. 

“I guess not quite yet!  The weaker US dollar is also helping and there is talk that the dollar is topping. So, that would be good for demand too.  Some are trying to talk up dry weather in Argentina as a reason to buy, but it is usually not until after the first of the year for us to worry about SA weather.  Lots of fund buying too, I think,” Scoville says.

 

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Monday’s Market Review

On Monday, the CME Group’s farm markets used huge demand to settle double digits higher. China’s fresh purchase of 15.7 million bushels of U.S. soybeans provided the impetus for a rally. Plus, outside money flowed into ag commodities.

At the close, the December corn futures settled 12¢ higher at $3.59¼, while May futures finished 12¢ higher at $3.66¼ per bushel.

January soybean futures finished 16¢ higher at $10.43½, while March soybean futures are 16¢ higher at $10.53¼.

March wheat futures finished 4¢ higher at $4.08¼.

January soy meal futures closed $7 short ton higher at $319.50. January soy oil futures are 0.05¢ lower at 37.67¢ per pound. 

In the outside markets, the Brent crude oil market is 24¢ per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 35 points higher.

China bought the equivalent of 15.7 million bushels of U.S. soybeans Monday. Private exporters reported to the U.S. Department of Agriculture export sales of 426,000 metric tons of soybeans for delivery to China during the 2016/2017 marketing year.

The marketing year for soybeans began September 1.

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