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Ag markets rally off of USDA reports | Thursday, August 12, 2021

China buys more U.S. soybeans, adding to this week’s large total.

On Thursday, the CME Group’s farm markets shoot higher, as a result of bullish USDA reports.

At the close, the Sept. corn futures finished 10¾¢ higher at $5.67½. New-crop Dec. futures finished 14¢ higher at $5.73½. March corn futures ended 12¢ higher at $5.79. 
Sept. soybean futures closed unchanged at $13.47. 

Nov. soybean futures settled 1¢ higher at $13.41. January soybean futures closed 1½¢ higher at $13.46.

Sept. wheat futures ended 26½¢ higher at $7.53. 

Dec. soymeal futures settled $2.00 per short ton higher at $358.50.

Dec. soy oil futures closed 0.02¢ lower at 61.58¢ per pound.

In the outside markets, the NYMEX crude oil market is 0.24 lower (-0.35%) at $69.01. The U.S. dollar is higher, and the Dow Jones Industrials are 44 points lower (-0.13%) at 35,440 points.

READ MORE: USDA drops U.S. corn yields, market surges 22¢ Thursday

Private exporters reported to the USDA the following activity:

  • Export sales of 132,000 metric tons of soybeans for delivery to China during the 2021/2022 marketing year.
  • Export sales of 198,000 metric tons of soybeans for delivery to unknown destinations during the 2021/2022 marketing year.
  • The marketing year for soybeans began Sept. 1.

Bob Linneman, Kluis Advisors, says that all eyes are on today’s USDA reports. 

“We are expecting to see a slight increase to soybean carryout for old and new crop in the report today. Corn carryout is expected to increase for old crop but decrease for new crop. Global supply for corn is expected to decrease slightly while soybeans are expected to be nearly unchanged,” Linneman stated in a note to customers. “With grain prices coiling on the charts over the past few weeks, will this report give traders the news needed to move prices outside of this recent range?”

Linneman added, “The export sales announcements this week have been encouraging, but traders have also been expecting them. U.S. soybeans are cheaper than Brazilian soybeans, which should help boost new-crop sales in coming weeks.”

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

  • Corn = 979,400 metric tons (mt.) vs. the trade’s expectation of 200,000 to 900,000 mt. 
  • Soybeans = 1.21 mmt. vs. the trade’s expectation of 100,000 to 900,000 mt.
  • Wheat = 416,900 mt. vs. the trade’s expectation of 250,000 to 700,000 mt.
  • Soybean meal = 384,600 mt. vs. the trade’s expectation of 50,000 to 200,000 mt.
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