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Corn closes mostly higher, soybeans mostly lower | Monday, May 17, 2021

China buys 67.0 million bushels of U.S. corn Monday.

On Monday, the CME Group’s farm markets end mixed.

At the close, the July corn futures finished 8¾¢ higher at $6.52¾. New-crop September futures finished 3½¢ higher at $5.66½. December corn futures closed 5½¢ lower at $5.37¾. 
 
July soybean futures settled 1¼¢ higher at $15.87¼. August soybean futures closed 2¢ lower at $15.25. New-crop November soybean futures ended 3¾¢ lower at $13.97.

July wheat futures 7½¢ lower at $6.99½. 

July soymeal futures finished $3.60 per short ton lower at $414.90.

July soy oil futures closed $1.39 higher at 68.97¢ per pound.

In the outside markets, the NYMEX crude oil market is +0.84 higher (+1.28%) at $66.21. The U.S. dollar is lower, and the Dow Jones Industrials are 81 points lower (-0.24%) at 34,300 points.

On Monday, private exporters reported to the USDA the following activity:

  • Export sales of 1,700,00 (67.3 million bushels) metric tons of corn for delivery to China during the 2021/2022 marketing year.
  • Export sales of 128,000 metric tons of corn for delivery to Mexico during the 2021/2022 marketing year.

The marketing year for corn began September. 1.

PJ Quaid, independent broker, says that the market is reacting negatively to investors that are holding long positions and are selling.

“Longs have lost interest and have exited. Option volatility was down all session. The moment corn turned negative, volatility was positive. The fear is to the downside. The weather looks good and things look to be calming down. Volume in corn is pretty low considering the size of the moves. Also, lumber prices are down hard, and traders have been using lumber prices as a little barometer to the heat of the market,” Quaid says.

Al Kluis, Kluis Advisors, says that now that the May futures contract is off of the board, investors will focus on today’s Crop Progress Report.   

“The May contracts expired Friday. May corn dropped by 86¢ from the Monday high to the Friday low and closed down 88¢ on the weekly chart. The May soybean contract had a 72¢ trading range for the week and closed down 47¢ on the weekly chart,” Kluis stated in a note to customers. “The USDA Crop Progress report today may show U.S. corn planting about 85% complete. With good weather last week, corn emergence will likely come in well ahead of normal. I expect soybean planting to be 65% complete.”  

Kluis added, “Will China continue to cancel old-crop corn purchases and roll those long positions out to new crop? If more old-crop cancellations are announced this week, then expect July to continue to drop compared with the December contract.”

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