Corn trades 17¢ higher | Thursday, April 8, 2021

Demand, pre-USDA report positioning supports markets.

On Thuursday, the buyers pushed up the CME Group’s farm markets.

The traders positioned temselves ahead of Friday’s USDA Supply/Demand Report. The trade expects the government to tighten U.S. corn and soybean ending stocks in tomorrow’s report.

At the close, the May corn futures finished 19¾¢ higher at $5.79½. July corn futures settled 16¢ higher at $5.62. New-crop December corn futures closed 9¾¢ higher at $4.94.
May soybean futures ended 6½¢ higher at $14.15½. July soybean futures closed 6¾¢ higher at $14.09¼. New-crop November soybean futures finished 2¾¢ higher at $12.73½.

May wheat futures closed 12¾¢ higher at $6.28. 

July soymeal futures settled $1.00 short term lower at $410.40.

July soy oil futures closed +0.51 higher at 51.41¢ per pound.

In the outside markets, the NYMEX crude oil market is -0.07 lower (-0.12%) at $59.70. The U.S. dollar is lower, and the Dow Jones Industrials are 25 points higher (+0.08%) at 33,471 points.

Separately, the USDA’s Weekly Export Sales Report Thursday shows strong demand figures for corn.

Corn = 807,000 metric tons (mmt.) vs. the trade’s expectations of 500,000 to 900,000 mmt. 

Soybeans = 431,000 mt. vs. the trade’s expectations of 100,000 to 600,000 mt.

Wheat = 611,900 mt.

Soybean meal = 132,500 mt.

Jack Scoville, PRICE Futures Group, says that the market is not revealing much today.

"The trade obviously liked the export sales and shipments from USDA today and it looks like funds or commercials decided to own the market going into the reports tomorrow. The support is probably coming from the funds, but I am not sure.  New uptrends trying to get established on the daily charts in just about all markets.  A very impressive move before the WASDE tomorrow," Scoville says.

Bob Linneman, Kluis Advisors, says that investors have more USDA data to prepare for this week.

“The old crop vs. new crop soybean spreads were aggressively sold during trading on Wednesday. Are traders throwing in the towel on that bull spread? That seems slightly odd. The stocks-to-use ratio for old crop remains at the tightest level since the 2013-2014 marketing year. Corn prices managed to end nearly a nickel higher in old crop while the new crop contract was up 2¢,” Linneman stated in a daily note to customers.

Linneman added, “In advance of the USDA report on Friday, there is a wide range of predictions for Brazilian soybean production. The growing conditions were not ideal this year. However, some analysts feel yields were better than forecast a few months ago. The gap between the low and high production estimates for Brazil is 325 million bushels. In comparison, the entire U.S. carryout is estimated at 120 million bushels.”

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