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Soybeans Close 13¢ Lower Tuesday

Profit-taking sinks soybean complex.

DES MOINES, Iowa -- On Tuesday, the CME Group’s soybean market ends double-digits lower.

At the close, the December corn futures finished 11¾¢ lower at $3.36¾, while March futures closed 9¼¢ lower at $3.49 per bushel.

January soybean futures are 13½¢ lower at $10.42½, while March soybean futures closed 13½¢ lower at $10.51.

March wheat futures finished 7¾¢ lower at $4.08¾.

January soy meal futures closed $4.00 per short ton lower at $324.20. January soy oil futures are 0.35¢ lower at 32.62¢ per pound. In the outside markets, the Brent crude oil market is $1.82 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 44 points higher.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says that today’s trading has been a day that has featured rolling of positions.  

“Other than that, I have done a little buying on the break after selling the recent rally through yesterday. Deliveries start tomorrow, and that is a lot of it, I think. Other than that, we just have had a nice run in the beans and need a correction. A nice run has not happened in the wheat or corn, but no one seems to care, and down they went. Corn at support which is why I am buying it. A really boring news day, and the fund buying in the beans is not there today,” Scoville says.

Meanwhile, the Disaggregated CFTC Report released on a delayed basis, yesterday, showed managed money traders getting less short corn, and longer soybeans.

Managed money traders cut over 25,000 net corn shorts for a net move of adding 28,700 contracts for the week ending last Tuesday, November 22.

For soybeans, managed money traders added a net 18,900 contracts; 5,100 soymeal contracts; and cut a net 1,900 soy oil. All of these moves were what the trade expected. For both Chicago and Kansas City wheat, managed money added 20,800 Chicago wheat contracts, and KC wheat moves were up 8,900 net in that category.

Producers and merchants recorded net loss in soy oil. However, those same traders added to their net corn shorts to the tune of 27,300 for the week. For soybeans, this group cut a net 17,200 contracts, and cut 13,800 soymeal and wheat contracts each.

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Monday Review of the Markets

On Monday, the CME Group’s soybean market regained its momentum to rally to a double-digit higher finish.

At the close, the December corn futures settled ¾¢ lower at $3.48½; March futures finished unchanged at $3.58¼ per bushel.

January soybean futures finished 10¢ higher at $10.56, and March soybean futures closed 10¢ higher at $10.64½.

March wheat futures ended 3¢ lower at $4.16½.

January soy meal futures finished $5.10 a short ton higher at $328.20. January soy oil futures closed 0.03¢ higher at 36.97¢ per pound. 

In the outside markets, the Brent crude oil market is $1.09 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 35 points lower.

Alan Brugler, president of Brugler Marketing & Management LLC, says the soybean market’s rally has faded due to the U.S. dollar.

“The dollar has rallied back from overnight lows. Strength in major buyer Japan currency also faded. Weekly export inspections were much smaller than last week, albeit above year-ago for this week,” Brugler says.

Jason Roose, U.S. Commodities grain analyst, says that soybeans continue to react positively to demand.

“Prices show strength today on renewed exports and tightening bean oil stocks. South American weather leans negative with better-than-expected rains in central Brazil, which may limit any rallies in a market that is technically overbought,” Roose says.

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