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Corn, Soybean Prices Settle Lower Friday

USDA data still weighs on markets.

DES MOINES, Iowa -- On Friday, the CME Group’s farm markets closed lower, still reeling from yesterday’s bearish USDA report that indicated growing global soybean production.

At the close, the May corn futures settled 2¾¢ lower at $3.64¼, while December futures finished 1¾¢ lower at $3.86½.

May soybean futures finished 4½¢ lower at $10.06. November soybean futures are 4¾¢ lower at $9.99¾.

May wheat futures closed 3½¢ lower at $4.40½.

May soy meal futures finished $0.20 per short ton higher at $328.70. May soy oil futures settled 0.43¢ lower at 32.68¢ per pound. 

In the outside markets, the Brent crude oil market is $0.78 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 40 points higher.

 

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Wednesday’s Grain Trade Review

On Wednesday, the CME Group’s farm markets finish lower, pressured by outside factors.

At the close, the May corn futures finished 3¾¢ lower at $3.72¼, and December futures finished 3¼¢ lower at $3.92¾.

May soybean futures finished 3¼¢ lower at $10.21¾. November soybean futures closed 3¼¢ lower at $10.10¼.

May wheat futures ended 9½¢ lower at $4.47.

May soy meal futures closed $0.20 per short ton lower at $331.10. May soy oil futures finished 0.19¢ lower at 33.54¢ per pound. 

In the outside markets, the Brent crude oil market is $2.86 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 49 points lower.

Deanna Hawthorne-Lahre, StatFutures cofounder and trader, says that macroeconomics are partly to blame for the lower grain markets.

“The U.S. dollar strength is finally getting the market’s attention. A signaled interest rate hike, and the ADP Report, a report that measures levels of nonfarm private employment, is showing strong numbers. All are weighing on the markets,” Hawthorne-Lahre says.

She adds, “Most investors were long corn and soybeans and got away with it. But we’re seeing who has the weak hands going into the WASDE Report Thursday.”

 

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Tuesday’s Grain Market Review

On Tuesday, the CME Group’s farm markets closed lower, as Brazil’s weather dries out and the USDA Supply/Demand Report approaches.

At the close, the May corn futures settled 2½¢ lower at $3.76, and December futures finished 2¢ lower at $3.96.

May soybean futures finished 12¢ lower at $10.25; November soybean futures ended 8½¢ lower at $10.13.

May wheat futures closed 2¢ lower at $4.56.

May soy meal futures close $2.40 per short ton lower at $331.30. May soy oil futures finished 0.54¢ lower at 33.73¢ per pound. 

In the outside markets, the Brent crude oil market is 1¢ per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 22 points lower.

Jack Scoville, The PRICE Futures Group senior market analyst, says it’s been mostly a quiet news day and a lighter-volume trading day. 

“Increasing South American crop sizes is the main reason to see the lower prices today. Soybeans, corn, and wheat are all holding support so far today, so prices could rebound later,” Scoville says. 

“No one is looking for much in either direction until the WASDE report comes out later this week. It could definitely include higher Brazil production estimates, but much over 106? I don’t think so. But, there is a big crop there,” he says.

Regarding Thursday’s report, Brazil’s corn crop estimates might go up, but the winter corn crop is just going in the ground now, and USDA would be fully justified in holding that number and the Argentina numbers unchanged,” Scoville says. 

 

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Monday’s Markets Review

On Monday, the CME Group’s futures markets closed mostly lower, with wheat being the only commodity making a move higher.

At the close, the May corn futures settled 2¼¢ lower at $3.78½, while December futures finished 1¼¢ lower at $3.98.

May soybean futures closed ¼¢ lower at $10.37¼. November soybean futures finished ¼¢ lower at $10.21¾.

May wheat futures finished 5¢ higher at $4.58½.

May soy meal futures closed 70¢ per short ton higher at $333.70. May soy oil futures closed 0.11¢ lower at 34.27¢ per pound. 

In the outside markets, the Brent crude oil market is 19¢ per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 58 points lower.

Jason Roose, U.S. Commodities grain analyst, says traders were preparing for this week’s government report.

“A risk off trade today in the corn market with position trading ahead of March 9 USDA crop report. There are still negative supply fundamentals in the soybean complex, with the funds still net-long. Any sign of corn losing demand would cause more weakness going into spring,” Roose says.

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