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Wheat breaks the $8.00 per bushel mark | Monday, December 6, 2021

China buys a fresh batch of U.S. soybeans.

From start to finish, the CME Group’s corn and soybean markets traded lower, while wheat reversed higher.

At the close, the March corn futures finished ½¢ lower at $5.83. May futures ended ¼¢ lower at $5.86. July corn futures closed ¼¢ higher at $5.85. 
 
January soybean futures closed 5¾¢ lower at $12.61. 

March soybean futures settled 4¾¢ lower at $12.66. May soybean futures closed 4¼¢ lower at $12.73.

March wheat futures finished 2½¢ higher at $8.06.
 
Jan. soymeal futures closed $6.00 per short ton lower at $352.60.


Jan. soy oil futures ended 0.64¢ higher at 57.86¢ per pound.

In the outside markets, the crude oil market is $3.40 per barrel higher at $69.66, the U.S. dollar is higher, and the Dow Jones Industrials are 711 points higher (+2.06%) at 35,291.

Cole Adams, ever. ag, says that the market is looking for fresh news to trade.

“We had an export sale this morning, but the market didn’t seem to care about that, which China is behind tremendously. I think the world is still waiting for any news about omicron and whether this is a serious strain or not. This is affecting every market, not just the commodity market. There is also a WASDE report coming out Thursday this week which typically doesn’t adjust yield much, but one never knows,” Adams says. 

He added, “Fertilizer prices and availability are another thing that continues the market and why we see the soybeans being hit harder than the corn. There is a potential for more soybean acres next year and with a good crop in South America, we are looking at short and long term pressures on soybeans. Wheat is seeing a little support after taking a good hit lately but overall still in a bullish trend. Weather is still an issue nationwide as we look into 2022.”

Soybeans deepen losses

At midsession, the CME Group’s soybean market continues to lose support Monday.

At midsession, the March corn futures are 6¢ lower at $5.78. May futures are 5 3/4¢ lower at $5.80 1/2. July corn futures are 5 1/2¢ lower at $5.80. 
 
January soybean futures are 11 3/4¢ lower at $12.55. 

March soybean futures are 10 3/4¢ lower at $12.60. May soybean futures are 9 1/4¢ lower at $12.68.

March wheat futures are 1 3/4¢ lower at $8.02.
 
Jan. soymeal futures are 6.70 per short ton lower at $351.90.


Jan. soy oil futures are 0.32 of a cent higher at 57.54 per pound.

In the outside markets, the crude oil market is $2.10 per barrel higher at $68.36 the U.S. Dollar is higher, and the Dow Jones Industrials are 627 points higher (+1.81%) at 35,207.

READ MORE: Farmers are weighing the price of fertility.

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Corn, soybean prices fall

On Monday, the CME Group’s farm markets drop.

In early trading, the March corn futures are 6¼¢ lower at $5.77. May futures are 5¾¢ lower at $5.80½. July corn futures are 5½¢ lower at $5.80. 
 
January soybean futures are 10¾¢ lower at $12.56. 

March soybean futures are 9¾¢ lower at $12.61. May soybean futures are 9¼¢ lower at $12.68.

March wheat futures are 5¾¢ lower at $7.98.
 
Jan. soymeal futures are $5.80 per short ton lower at $350.00.


Jan. soy oil futures are 0.06¢ lower at 57.16¢ per pound.

In the outside markets, the crude oil market is $1.16 per barrel higher at $67.42, the U.S. dollar is higher, and the Dow Jones Industrials are 443 points higher (+1.28%) at 35,024.

On Monday, private exporters reported sales of 130,000 MT of soybeans for delivery to China during the MY 2021/2022.

Bob Linneman, Kluis Advisors, says that investors are watching Brazil's crop-weather get drier.

“On Friday, the corn and soybean markets closed mostly higher, while the wheat market was under pressure. Commodity funds were active buyers in the corn and soybean markets. Weather concerns are increasing in southern Brazil,” Linneman stated in a note to customers.

Linneman added, “We have likely seen some of the largest crop projections for South America. The weather pattern was quite favorable in October and November but has turned much warmer and drier for southern Brazil and eastern Argentina for December. This is a critical time for the crops in that region. We are entering the time when corn is going through pollination and soybeans are flowering and setting pods.”

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