Traders keep positions close to the vest, ahead of holiday weekend | Friday, May 28, 2021
On Friday, the CME Group’s farm markets closed lower, as investors choose not to take big positions into the holiday weekend.
At the close, the July corn futures finished 7½¢ lower at $6.56¾. New-crop September futures settled 12¼¢ lower at $5.76¼. December corn futures closed 9½¢ lower at $5.45½.
July soybean futures finished 6½¢ lower at $15.30. August soybean futures closed 5¾¢ lower at $14.82¾. New-crop November soybean futures settled 5¢ lower at $13.72½.
July wheat futures closed 12½¢ lower at $6.63½.
July soymeal futures ended $5.20 per short ton higher at $395.50.
July soy oil futures finished 1.02¢ lower at 65.79¢ per pound.
In the outside markets, the NYMEX crude oil market is -0.41 lower (-0.61%) at $66.44. The U.S. dollar is lower, and the Dow Jones Industrials are 107 points higher (+0.31%) at 34,572 points.
Bob Linneman, Kluis Advisors, says that investors will watch the performance of the bull spreads.
“Thursday was a much-needed day for grain bulls. July corn settled up 40¢, which is the daily limit, while new crop was up 34¢. Soybeans were up just over 30¢ at the close. Technical buying was noted alongside renewed sentiments that China is likely to continue purchasing U.S. grain at a strong pace as traders keep a close eye on dry conditions in China’s major corn-producing region. Freezing temperatures overnight were expected in central South Dakota and Minnesota, much of North Dakota, and the northern region of Wisconsin. Hopefully, this is the last frost threat this spring,” Linneman stated in a note to customers.
Linneman added, “The bull spreads in corn and soybeans rebounded nicely on Thursday. The July vs. December corn spread briefly dipped under the 30-day average on Wednesday and Thursday, while the July vs. November bean spread tested the May 6 low. If the rally is going to continue in corn and soybeans, then the bull spreads will need to move higher.”
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