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Corn, Beans Lower in Early Trading Friday

Exports sales for both crops were dismal.

Corn and soybean futures were lower on Friday morning amid weak export sales and an accelerating harvest.

Sales of corn to overseas buyers dropped to a marketing-year low in the seven days that ended on Oct. 11, the U.S. Department of Agiculture said in a report. Sales totaled 382,500 metric tons, down 62% from the previous week and 72% from the prior four-week average. 

Soybean sales missed expecatations at 293,600 metric tons, down 33% from a week earlier and 67% from the average, the USDA said.  

Drier weather in the Midwest the past week has allowed producers back into fields to continue harvesting their crops. The weather is expected to remain dry through much of the Corn Belt this weekend, forecasters said. 

Corn futures fell  2 1/2¢ to $3.68 1/4 a bushel on the Chicago Board of Trade. 

Soybeans for November delivery declined 4 1/4¢ to $8.59 1/4 a bushel. Soymeal was down $3 to $313.30 a short ton and soy oil added 0.34¢ to 29.36¢ a pound.

Wheat was higher, rising 2 1/4¢ to $5.15 1/4 a bushel while Kansas City futures added 1 3/4¢ to $5.16 1/2 a bushel. 

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Thursday's Grain Market Review

DES MOINES, Iowa -- On Thursday, the CME Group's soybean market falls double-digits.

At the close, the December corn futures finished 4¢ lower at $3.70. March futures ended 4 1/4¢ lower at $3.82.
 
November soybean futures finished 22 1/4¢ higher at $8.63 1/2. January soybean futures closed 22¢ lower at $8.77 3/4.
 
December wheat futures ended 4 1/2¢ lower at $5.13.
 
December soymeal futures settled 7.40¢ per short ton lower at $316.30.
 
December soy oil futures closed $0.54 lower at 29.02¢ per pound.
 
In the outside markets, the NYMEX crude oil market is $1.03 lower, the U.S. dollar is higher, and the Dow Jones Industrials are 362 points lower.
 
December soy oil futures are $0.40 lower at 29.16¢ per pound.

Al Kluis, Kluis Advisors, says that the markets will remain choppy for awhile.

“The market remains a bit choppy. We are seeing some hedge pressure as harvest rolls along, but breaks are supported quickly. Look for the choppy action to continue until we get harvest past 50% in both corn and soybeans,” Kluis stated to customers in a daily note.

Mike North, President Commodity Risk Management Group, says that soybeans are seeing some tightness around the country with recent weather delays. 

“Difficulty with origination has put local bids into play that have given some rise to futures elevation. However, those are quickly met by sellers.  The same has been true of corn. There is very little by way of new news to talk about,” North says.

On Thursday, the USDA released its Weekly Export Sales Report. The numbers were dismal. In fact, corn sales hit an early marketing year low. Here are the details:

  • Corn= 382,500 metric tons vs. the trade’s expectations of between 800,000-1,250,000 mt.

  • Soybeans= 295,600 mt. vs. the trade’s expectations of between  600,000-1,000,000 mt.

  • Wheat= 476,000 mt. vs. the trade’s expectations of between 250,000-600,000 mt.

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Wednesday's Grain Market Review

On Wednesday, the CME Group’s farm markets finish mostly weaker.

At the close, the December corn futures finished 1¢ lower at $3.74¼. March futures closed ¾¢ lower at $3.86½.

November soybean futures closed 1¢ higher at $8.85¾. January soybean futures settled ½¢ higher at $8.99.

December wheat futures ended 6¢ lower at $5.17½.

December soymeal futures closed 1.40¢ per short ton higher at $323.70.

December soy oil futures settled $0.10 lower at 29.56¢ per pound.

In the outside markets, the NYMEX crude oil market is $2.15 lower, the U.S. dollar is higher, and the Dow Jones Industrials are 32 points lower.

Al Kluis, Kluis Advisors, says that the grain markets feel the volatility of the outside markets.

“The U.S. equity markets were able to regain some of the large losses sustained last week. Crude oil has tested the 40-day average for the last four trading sessions. A break above the 20-day average at $72.92 would put the bulls back in charge,” Kluis stated in a daily note to customers.

Kluis adds, “South America is planting soybeans at a record pace. Although this does not directly correlate to big yields, it does bode well for production if weather cooperates. South American weather has center stage.”

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Tuesday’s Grain Market Review

On Tuesday, the CME Group’s farm markets fall.

At the close, the December corn futures finished 3¢ lower at $3.75. March futures ended 3¢ lower at $3.87.

November soybean futures settled 7 3/4¢ lower at $8.83. January soybean futures settled 7 3/4¢ lower at $8.98.

December wheat futures closed 1 3/4¢ lower at $5.23.

December soymeal futures ended 5.00¢ per short ton lower at $322.00.

December soy oil futures are $0.08 lower at 29.68¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.05 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 467 points higher.

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Monday’s Grain Market Review

On Monday, the buyers check in early this week, propping up the soybean rally.

At the close, December corn futures finished 3½¢ higher at $3.77; March futures closed 3¼¢ higher at $3.89.
 
November soybean futures settled 24¢ higher at $8.91; January soybean futures finished 24¢ higher at $9.05.
 
December wheat futures closed 7¾¢ higher at $5.25.
 
December soy meal futures finished 10.10¢ per short ton higher at $327.
 
December soy oil futures closed 0.37¢ higher at 29.76¢ per pound.
 
In the outside markets, the NYMEX crude oil market is  42¢ higher, the U.S. dollar is lower, and the Dow Jones Industrials are 37 points higher.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says the weather is leading the charge higher.

“There is little harvest activity going on right now. Western Corn Belt areas will be shut this week to drydown, maybe some eastern areas, too. Another week before winter wheat can start being planted again,” Scoville says.  

Scoville adds, “The NOPA crush was very strong and a record for the month to give beans that extra push. World and Russian wheat prices firm and helping support winter wheat. A weaker U.S. dollar is supporting all markets. Gulf beans and corn and SRW higher today. So, there are a lot of supportive things going on.”

Al Kluis, Kluis Advisors, says fundamental and technical factors will control the markets.

“The USDA Crop Progress Report today will show corn harvest at about 42% complete and soybeans about 40% complete. Not much got done in the last week in the western Corn Belt, but the forecast looks better for this week,” Kluis stated in a daily note to customers.

He asked, “Will last week’s lows hold in the Chinese and U.S. stock markets?”

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