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Soybeans Add to Week’s Gains Ahead of USDA Report

The May USDA Report could get trumped by Midwest planting weather.

DES MOINES, Iowa -- It’s report day. And the CME Group’s farm futures have moved higher in early trading.

At 11:00 a.m. CT, the USDA will update its Supply/Demand and World Production estimates.

In early trading, the July corn futures are 1¼¢ higher at $3.67; December futures are 1¢ higher at $3.86.

July soybean futures are 3½¢ higher at $9.77, and November soybean futures are 2¼¢ higher at $9.69.

July wheat futures are ¼¢ higher at $4.29.

July soy meal futures are $1.30 per short ton higher at $319.80. July soy oil futures are $0.10 lower at 32.79¢ per pound. 

In the outside markets, the Brent crude oil market is $0.64 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 55 points lower.

 

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Tuesday’s Grain Market Review

On Tuesday, the CME Group’s farm markets moved mostly higher, with wheat finishing weaker.

Investors await tomorrow’s USDA May Supply/Demand Report, which is expected to show larger U.S. ending stocks for corn, soybeans, and wheat.

At the close, the July corn futures settled ½¢ higher at $3.66½; December futures closed ¾¢ higher at $3.85.

July soybean futures finished 9¼¢ higher at $9.74, and November soybean futures finished 6¼¢ higher at $9.67½.

July wheat futures ended 4¢ lower at $4.29.

July soy meal futures settled $4.90 per short ton higher at $318.50. July soy oil futures finished $0.05 lower at 32.89¢ per pound. 

In the outside markets, the Brent crude oil market is $0.44 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 17 points lower.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says that the upward movement seems to be a mystery.

“There are reports that China will reduce VAT taxes starting July 1 to support local crushers, but I can’t see that as a reason for the market to rally,” Scoville says.

Scoville adds, “Some Brazil farmer-selling is showing up now, so we might be near the highs.”

Regarding wheat, a major disappointment for investors happened when the Kansas tour really ignored damaged fields, he says. 

“Corn is hanging in there, but I can’t generate much interest in trading it today. Just selling the bean rally for my guys,” Scoville says.

 

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Monday’s Grain Market Review

On Monday, the CME Group’s farm markets started, stayed, and finished lower.

At the close, the July corn futures settled are 4¾¢ lower at $3.66; December futures finished 4¼¢ lower at $3.84.

July soybean futures closed 8¼¢ lower at $9.64¾, and November soybean futures ended 5¼¢ lower at $9.61¼.

July wheat futures finished 8¾¢ lower at $4.33¼.

July soy meal futures ended $3.30 per short ton lower at $313.60. July soy oil futures closed $0.04 higher at 32.94¢ per pound. 

In the outside markets, the Brent crude oil market is $0.07 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 8 points lower.

Jason Roose, U.S. Commodities grain analyst, says that the weaker markets stem from drier weather forecasts.

“Grain markets are retreating today on prospects of improving weather for the Midwest for planting progress,’ Roose says.

Also, investors anticipate larger corn, soybean, and wheat stocks on the upcoming USDA crop report Wednesday, he says.

“Plus, the stronger dollar also is giving the grains resistance, making us less competitive on exports,” Roose says.

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