Weather concerns goose the corn, soybean markets | June 8, 2021
On Tuesday, the CME Group’s farm markets benefit from the USDA Crop Progress report showing declining good/excellent crop ratings.
At the close, the July corn futures finished ¾¢ higher at $6.80. New-crop September futures closed 7¢ higher at $6.28. December corn futures settled 6¾¢ higher at $6.09.
July soybean futures settled 19½¢ higher at $15.80. August soybean futures finished 17¼¢ higher at $15.39. New-crop November soybean futures finished 17¢ higher at $14.57.
July wheat futures closed 5¢ higher at $6.85.
July soymeal futures closed $2.90 per short ton higher at $389.80.
July soy oil futures finished $1.25 higher at 72.08¢ per pound.
In the outside markets, the NYMEX crude oil market is +0.82 higher (+1.18%) at $70.05. The U.S. dollar is higher, and the Dow Jones Industrials are 4 points higher (+0.01%) at 34,635 points.
Jack Scoville, PRICE Futures Group, says it’s been a wild day for the grain markets.
“We are still in a weather market and the rains in the northern Great Plains and northern Midwest were not really all that beneficial yesterday. Plus, some isolated showers around Chicago, but nothing at my house despite a lot of clouds. Things look good south and east, but the Plains will be very warm and mostly dry along with the northern Midwest. Pretty wild day,” Scoville says.
Al Kluis, Kluis Advisors, says that the market is digesting the progress of the U.S. crops.
“On Monday, grain prices rallied sharply early in the day on hot weekend weather and the hotter extended weather forecasts. Then the wheat market turned lower. That pulled corn and then nearby soybeans lower in a very volatile day of trade. The strength was in new-crop corn and soybean futures. The USDA Crop Progress report showed 72% of the U.S. corn crop rated in good to excellent condition. This was down 4% from last week and was 2% below trade estimates. The initial soybean rating came out with the USDA projecting 67% of the U.S. crop rated good to excellent. The hard red spring wheat was reported at just 38% good to excellent down 4% from last week and 44% below last year. A whopping 25% of the crop is now rated poor to very poor,” Kluis stated in a note to customers.
Kluis added, “Will the current weather pattern and the hot dry conditions continue in the western and northern Corn Belt? So far, I do not see any major damage to the corn crop in the dry areas... yet. However, if the dry weather pattern continues into late June and early July, then it will impact yields in about 30% of the Corn Belt.”