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Soybeans Close 7¢ Off Friday

Wheat is the Friday leader.

DES MOINES, Iowa -- On Friday, the CME Group’s soybean market, closing lower, felt the pressure from profit-taking and improved crop weather for maturing soybeans.

At the close, the December corn futures finished 1/2¢ higher at $3.54, while March futures closed 3/4¢ higher at $3.67.

November soybean futures settled 7 1/4¢ lower at $9.68; January soybean futures finished 7¢ lower $9.79.

September wheat futures ended 6¢ higher at $4.49.

December soy meal futures ended $1.70 per short ton lower at $311.40. December soy oil futures closed 0.27¢ lower at 34.81¢ per pound.

In the outside markets, the Brent crude oil market is $0.02¢ higher, the U.S. dollar is lower, and the Dow Jones Industrials are 53 points higher.

On Friday, private exporters reported to the U.S. Department of Agriculture export sales of 132,000 metric tons of soybeans for delivery to China during the 2017/2018 marketing year.

The marketing year for soybeans began September 1.

Jason Roose, U.S. Commodities analyst, says that both fundamental and technical factors drive today’s market.

“Grains are mixed today with unwinding of spreads and profit taking on soybeans for the weekend, harvest activity picking up on soybeans with beans maturing due to dry weather, corn showing good support with basis levels tightening, and stronger end user interest,” Roose says.

 

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Thursday’s Grain Market Review

Don’t look now, but the CME Group’s soybean market has added 26¢ in two sessions this week.

The soybean market is using strong demand to jump up double digits.

At the close, the December corn futures settled 2¾¢ higher at $3.54. March futures finished 2¾¢ higher at $3.66½.

November soybean futures finished 15½¢ higher at $9.76, and January soybean futures settled 15¾¢ higher $9.86.

September wheat futures closed ¼¢ lower at $4.43.

December soy meal futures finished $7.70 per short ton higher at $313.10. December soy oil futures closed 0.01¢ lower at 35.08¢ per pound. 

In the outside markets, the Brent crude oil market is 38¢ higher, the U.S. dollar is lower, and the Dow Jones Industrials are 49 points higher.

If you missed it, the USDA released fresh and separately Weekly Export Sales on Thursday. Corn sales at the high end of expectations, soybeans beat, wheat missed.

  • Corn: 1.047 million metric tons vs. the trade’s expectations of between 650,000 and 1,200,000 mt
  • Soybeans: 1.612 mmt vs. the trade’s expectations of between 1,000,000 and 1,500,000 mt
  • Soybean meal: 146,900 mt vs. the trade’s expectations of between 50,000 and 400,000 mt
  • Wheat: 316,700 mt vs. the trade’s expectations of between 350,000 and 550,000 mt

Separetely, USDA announced fresh soybean sales to China reported today.

Private exporters reported to the USDA export sales of 198,000 metric tons of soybeans for delivery to China during the 2017-2018 marketing year.

The marketing year for soybeans began September 1.

Dustin Johnson, AgYield’s senior strategist, says soybean sales are helping the higher trade.

“Export demand, reported this morning, has led this rally, but also finding an expansion of the corn-bean price ratio again. The buying could be due to traders being caught one way on bets that soybean acres will rise from the FSA data,” Johnson says.

Mike North, president of Commodity Risk Management Group, agrees demand is propping up the soybean market.

“Indeed, soybean exports were nearly 30% higher than even the highest guess for this week. At a time when the world is flush with inventory, exports separate the winners from the losers. The U.S. has had a string of wins in this regard. Together with supporting technical features, buyers are adding soybean positions. This has provided coattail strength to corn and wheat,” North says.

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Wednesday’s Grain Market Review

On Wednesday, the CME Group’s farm futures stay higher, despite a bearish USDA report yesterday.

At the close, the December corn futures finished unchanged at $3.51, and March futures ended unchanged at $3.63¾.

November soybean futures closed 10¢ higher at $9.60½; January soybean futures settled 10¢ higher $9.70¾.

September wheat futures ended 1¼¢ higher at $4.43¼.

December soy meal futures settled $5.40 per short ton higher at $302.10. December soy oil futures closed 0.10¢ lower at 35.09¢ per pound. 

In the outside markets, the Brent crude oil market is $1.05 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 12 points higher.

The USDA announced fresh soybean sales Wednesday.

Private exporters reported to the USDA export sales of 167,370 metric tons of soybeans for delivery to Mexico during the 2017-2018 marketing year.

The marketing year for soybeans began September 1.

Deanne Hawthorne-Lahre, StatFutures cofounder and trader, says investors had yesterday’s bearish USDA data baked into the markets already.

“We think the news was in the market, and the street was way too short, and when we bounced yesterday, all equations had to be reevaluated,” Hawthorne-Lahre says.

She adds, “Also, it’s clear that China is going to take beans at these price levels and corn is along for the ride. But, we’ll see if that demand can give this stronger price action some legs.”

Near term, the demand is friendly, but Russia’s 81 mmt wheat crop will be a problem in the next few months, Hawthorne-Lahre says.

 

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Tuesday’s Grain Market Review

On Tuesday, the CME Group’s farm markets trade mixed, ahead of the 11 a.m. CT USDA September Supply/Demand Report and the Crop Progress Report.

In early trading, the December corn futures are 2¢ lower at $3.55, while March futures are 2¼¢ lower at $3.67.

November soybean futures are 3½¢ higher at $9.63; January soybean futures are 3¼¢ higher $9.73.

September wheat futures are 1½¢ higher at $4.36.

December soy meal futures are unchanged at $303.60. December soy oil futures are 0.26¢ higher at 35.41¢ per pound. 

In the outside markets, the Brent crude oil market is 13¢ higher, the U.S. dollar is higher, and the Dow Jones Industrials are 54 points higher.

 

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Monday’s Grain Market Review

On Monday, the CME Group’s corn market found a few buyers, while the sellers won the day in the soybean complex.

Investors await this afternoon’s USDA Crop Progress Report and tomorrow’s monthly Supply/Demand Report.

At the close, the December corn futures finished ¾¢ higher at $3.57½, and March futures finished ¾¢ higher at $3.69.

November soybean futures settled 2¢ lower at $9.60; January soybean futures finished 2¢ lower $9.70.

September wheat futures finished 3¢ lower at $4.34¾.

December soy meal futures closed $2 per short ton lower at $300.40. December soy oil futures ended 0.21¢ higher at 35.15¢ per pound. 

In the outside markets, the Brent crude oil market is 53¢ higher, the U.S. dollar is higher, and the Dow Jones Industrials are 257 points higher.

On Monday, private exporters reported to the USDA export sales of 352,000 metric tons of soybeans for delivery to unknown destinations during the 2017-2018 marketing year.

The marketing year for soybeans began September 1.

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