Grains and soybeans close lower

Wheat futures showed the biggest losses.

DES MOINES, Iowa -- At the close of CME Group trading Friday, corn futures ended this week’s selloff down slightly while wheat showed sharper losses.

July corn futures finished ¼¢ lower at $3.17; December corn ended 2¾¢ lower at $3.25¼.
 
July soybean futures finished 4¼¢ lower at $8.65; November soybean futures 7¢ lower at $8.61¼.

September wheat futures settled 12½¢ lower at $4.75¾.

July soy meal futures ended $3.40 per short ton lower at $282.10. July soy oil futures are 0.34¢ lower at 27.20¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.40 per barrel lower at $38.32 per barrel, and the U.S. dollar is lower. The Dow Jones Industrials are 645 points lower.

Jim Bower of Bower Trading, Inc. says traders are weighing improved weekly demand against beneficial rain in the Midwest.

“We are expecting to see nearly 55% coverage in the Corn Belt the next five days but, as usual this time of year, the rain amounts will vary greatly,” he says.

“Yesterday most of the row crop markets saw their technical support levels tested with the favorable precip forecast and we will likely see these technical support levels hold until the USDA’s crop report Tuesday,” he said earlier on Friday. “Following Tuesday’s report, the market action will be hinged closely on the daily weather forecast once again.”

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DES MOINES, Iowa -- At midsession Friday, old crop corn futures remain slightly higher while other grain futures slip into the red.

During late morning trading July corn futures are ¼¢ higher at $3.17½. Dec. corn futures are 1½¢ lower at $3.29½.
 
July soybean futures are 3¢ lower at $8.66¼. November soybean futures are 3¾¢ lower at $8.64½.

Sep. wheat futures are 11¾¢ lower at $4.76½.

July soymeal futures are $2.30 per short ton lower at $283.20. July soy oil futures are 0.09¢ lower at 27.45¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.71 per barrel lower at $38.01 per barrel and the U.S. dollar is higher. The Dow Jones Industrials are 540 points lower.

“There's a lot of short positions from the managed fund community in the market right now with a major USDA report right around the corner on June 30,” says Matt Tranel of the Commodity Risk Management Group. “You would expect to see some profit taking before the release of this report and is likely a reason as to why we're a touch higher here this morning at the time of this writing.”

Also on Friday, Private exporters reported to the U.S. Department of Agriculture the following activity:

--Export sales of 132,000 metric tons of soybeans for delivery to China during the 2020/2021 marketing year; and

--Export sales of 203,500 metric tons of grain sorghum received during the reporting period for delivery to unknown destinations. Of the total, 135,500 metric tons is for delivery during the 2019/2020 marketing year and 68,000 metric tons is for delivery during the 2020/2021 marketing year.

The marketing year for sorghum and soybeans began Sept. 1.

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DES MOINES, Iowa -- On Friday, the CME Group’s corn futures are slightly higher, with soybeans falling.

In early trading, July corn futures are ½¢ higher at $3.17¾. Dec. corn futures are 1½¢ higher at $3.29½.
 
July soybean futures are 3¢ lower at $8.66¼. November soybean futures are 4¢ lower at $8.64¼.

Sep. wheat futures are 4½¢ lower at $4.83¾.

July soymeal futures are $1.30 per short ton lower at $284.20. July soy oil futures are 0.14¢ lower at 27.40¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.16 per barrel lower at $38.56 per barrel and the U.S. dollar is lower. The Dow Jones Industrials are 292 points lower.

After this week’s downturn in corn futures, Al Kluis of Kluis Commodity Advisors says, “If the weather forecast over the next week occurs as suggested, the bulls will have a hard time getting prices to rally. The USDA report on Tuesday may be the last chance the bulls have at a catalyst for a rally. Traders are tired of waiting for China to step in and buy U.S. corn.”

He’s also watching ethanol demand.

“Ethanol prices fell over a dime on Thursday as analysts start to estimate the continued impact that COVID-19 will have on demand. Will we see buyers step in and buy the dip, or will the selling gain momentum?”

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On Thursday, the CME Group’s farm markets mostly lower.

At the close, the July corn futures closed 7¢ lower at $3.17¾. Dec. corn futures finished 5¾¢ lower at $3.28.
 
July soybean futures settled 1½¢ lower at $8.69. November soybean futures ended 1¾¢ lower at $8.68.

Sep. wheat futures closed 5½¢ higher at $4.86¾. 

July soymeal futures settled $1.20 per short ton lower at $285.50. July soy oil futures closed 0.11¢ lower at 27.54¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.86 per barrel higher at $38.87. The U.S. dollar is higher, and the Dow Jones Industrials are 191 points higher.

Al Kluis, Kluis Advisors, says that investors will be watching weather forecasts going forward.

“Estimates are being discussed daily about the USDA Acreage report this coming Tuesday. Many predictions suggest an increase in soybean acres of more than 1 million acres while corn acres decline. Traders are also watching the forecasts; weather models are suggesting that dry areas in the Corn Belt will get much-needed moisture over the next seven days,” Kluis told customers in a daily note. 

Kluis added, “This is the time of year when grain prices can have a quick reaction to a miss by the weather models. If the rain events forecast for the next week do not unfold, then the bulls could get the spark they have been waiting for.”

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Wednesday’s Grain Market Review

INDIANOLA, Iowa -- On Wednesday, the CME Group’s farm markets can’t find any traction.

At the close, the July corn futures finished ¾¢ lower at $3.24¼. Dec. corn futures finished 3¢ lower at $3.33¾.
 
July soybean futures settled 4¼¢ lower at $8.70¾. November soybean futures ended 4¢ lower at $8.70¼.

Sep. wheat futures closed 5¼¢ lower at $4.85¼. 

July soymeal futures ended $0.40 per short ton higher at $286.70. July soy oil futures closed $0.52 lower at 27.65¢ per pound.

In the outside markets, the NYMEX crude oil market is $2.60 per barrel lower at $37.77. The U.S. dollar is higher, and the Dow Jones Industrials are 659 points lower.

Al Kluis, Kluis Advisors, says that next week’s USDA Acreage Report is coming into focus.

“The average trade estimates for next week’s USDA Acreage report are suggesting a lot more soybean acres and less corn, but those projections may be wrong. Most farmers planted the corn acres they intended to plant,” Kluis told customers in a daily note. 

Kluis added, “The Energy Information Agency report comes out today. Expect another week when gasoline and ethanol demand move higher and crude oil, gasoline, and ethanol inventories move lower. The economy is opening up. With fewer U.S. consumers flying to their favorite vacation spot, more are driving.”

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Tuesday’s Grain Market Review

On Tuesday, the CME Group’s farm markets finish mostly lower.

At the close, the July corn futures finished 3¼¢ lower at $3.25. Dec. corn futures ended 5¢ lower at $3.36¾.
 
July soybean futures closed 1¼¢ lower at $8.75. November soybean futures settled 5¼¢ lower at $8.74.

Sep. wheat futures closed 1½¢ higher at $4.91. 

July soymeal futures closed $0.20 per short ton lower at $286.30. July soy oil futures settled $0.18 lower at 28.17¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.33 per barrel lower at $40.40. The U.S. dollar is lower, and the Dow Jones Industrials are 255 points higher.

On Tuesday, private exporters reported to the USDA export sales of 132,000 metric tons of soybeans for delivery to China during the 2020/2021 marketing year.
 
The marketing year for soybeans began September 1. 

Al Kluis, Kluis Advisors, says that investors will be watching for clarification on the U.S.-China trade deal.

“White House advisor Navarro said yesterday afternoon that the Trump administration was going to walk away from the Phase 1 trade deal, which initially caused stock and commodity prices to plunge. However, by 9 p.m., he had walked away from that comment. This created some large swings in the overnight stock futures and the grain markets,” Kluis told customers in a daily note. 

Kluis added, “The buying spree by China is just starting. China has assured the U.S. Trade Office that it will make good on buying the $36.1 billion worth of ag products called for in the Phase 1 agreement. This suggests huge purchases of corn, soybeans, ethanol, and pork in the third and fourth quarter of 2020. At the current futures price and with the weak U.S. dollar, this is a great long-term buy.”

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Monday’s Grain Market Review

INDIANOLA, Iowa -- On Monday, the CME Group’s farm markets pull back.

At the close, the July corn futures finished 4 1/4¢ lower at $3.28. Dec. corn futures closed 3 3/4¢ lower at $3.41.
 
July soybean futures finished 1/4¢ lower at $8.76 1/4. November soybean futures finished 1 1/2¢ lower at $8.79 1/4.

Sep. wheat futures closed 4 1/4¢ higher at $4.89 3/4. 

July soymeal futures settled $0.50 per short ton lower at $286.50. July soy oil futures ended $0.17 lower at 28.35¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.85 per barrel higher at $40.06. The U.S. dollar is lower, and the Dow Jones Industrials are 123 points higher.

Al Kluis, Kluis Advisors, says that investors will be eyeing today's Crop Progress Report.

"The USDA Crop Progress Report today will show corn conditions down another 1 to 2% (at 68 or 69%) good to excellent and the soybean ratings will also decline by about 1%. The survey was taken late last week ahead of the recent rain across the Corn Belt. The good areas cannot get much better and dry areas in the southwest Corn Belt, Illinois and Indiana will move lower," Kluis told customers in a daily note. 

Kluis added, "Watch the extended weather forecasts for Kansas, Colorado, Texas, and also in the eastern Corn Belt in Illinois and Indiana. Those key states have missed much of the recent rain and crop conditions have been moving lower in those areas."

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