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Soybeans Sink 18¢ Friday

The farm markets experience a risk-off movement.

DES MOINES, Iowa -- On Friday, the CME Group's farm markets continue a sell-off.

At the close, the July corn futures finished 5 1/2¢ lower at $3.96 1/2. December futures finished 5¢ lower at $4.14 1/4.

July soybean futures settled 18¢ lower at $10.03.  November soybean futures ended 16 1/4¢ lower at $10.14.

July wheat futures ended 7 3/4¢ lower at $4.98.

July soy meal futures finished $7.50 per short ton lower at $378.60. July soy oil futures closed 0.18 higher at 31.31¢ per pound. 

In the outside markets, the NYMEX crude oil market is $0.65 lower, the U.S. dollar is lower, and the Dow Jones Industrials are 56 points higher.

 

 

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Thursday's  Grain Market Review

On Thursday, the CME Group’s farm markets trade mixed, awaiting the USDA's May Supply/Demand Reports.

The USDA is scheduled to release its monthly reports at 11 a.m. (CDT) today.

In early trading, July corn futures are ¼¢ lower at $4.02; December futures are ¼¢ lower at $4.19.

July soybean futures are 3¾¢ higher at $10.19; November soybean futures are 3¢ higher at $10.27.

July wheat futures are 2½¢ lower at $5.08.

July soy meal futures are $1.40 per short ton higher at $387.20. July soy oil futures are even at 31.03¢ per pound. 

In the outside markets, the NYMEX crude oil market is 15¢ lower, the U.S. dollar is lower, and the Dow Jones Industrials are 95 points higher.

On Thursday, USDA Weekly Export Sales Report showed that sales came in below expectations for all commodities except soybeans. Here is the report:

  • Corn= 785,600 metric tons vs. the trade’s expectations of between 800,000-1,250,000 metric tons.
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  • Soybeans=  632,600 mt. vs. the trade’s expectations of between 400,000-900,000 metric tons.
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  • Wheat=  83,400 mt. vs. the trade’s expectations of between 250,000-700,000 metric tons
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  • Soybean meal= 90,300 mt. vs. the trade’s expectations of between 100,000-400,000 metric tons.

 

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Wednesday’s Grain Market Review

On Wednesday, the CME Group’s farm markets weakend vs. yesterday’s rally.

At the close, the July corn futures settled ½¢ lower at $4.02¾; December futures finished even at $4.19½.

July soybean futures closed 4½¢ lower at $10.15¾; November soybean futures ended 1¢ lower at $10.24¼.

July wheat futures finished 4¢ lower at $5.10½.

July soy meal futures finished 10¢ per short ton lower at $385.80. July soy oil futures finished 0.34¢ higher at 31.03¢ per pound. 

In the outside markets, the NYMEX crude oil market is $2.10 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 157 points higher.

Jason Roose, U.S. Commodities, says the markets are on the defensive.

“Grains are trading on the defensive today, ahead of tomorrow’s USDA Crop Report. Cautious activity is surrounding the market with favorable planting weather and unknown trade negotiations giving the market resistance, as well. The tight world corn carryover, strong corn demand will give the corn mild support on breaks,” Roose says. 

Al Kluis, Kluis Commodities, says all eyes are on tomorrow’s USDA data.

“Investors will get to trade USDA projections for corn and soybean supply and demand for the 2018-2019 marketing year, and the first estimate of U.S. winter wheat production in 2018,” Kluis stated in a daily note to customers.

He added, “If the USDA report on Thursday shows world supplies declining for grains, then will it be enough for the bulls to stage another leg higher on the charts? Or do the funds use a rally to liquidate longs?”

 

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Tuesday’s Grain Markets Review

On Tuesday, the CME Group’s farm futures markets end higher.

At the close, the July corn futures finished 2½¢ higher at $4.03¼; December futures finished 3¢ higher at $4.19½.

July soybean futures closed 8¾¢ higher at $10.20¼; November soybean futures finished 7¼¢ higher at $10.25.

July wheat futures ended 3¢ higher at $5.14½.

July soy meal futures closed $3.40 per short ton higher at $385.90. July soy oil futures closed 0.18¢ lower at 30.69¢ per pound. 

In the outside markets, the NYMEX crude oil market is 94¢ lower, the U.S. dollar is higher, and the Dow Jones Industrials are 17 points lower.

Mike North, president at Commodity Risk Management Group, says investors are positioning themselves ahead of this week’s USDA reports.

“The higher trade was strictly a response to yesterday’s sell-off in advance of Thursday’s WASDE. The selling of Monday moved the needle too far ahead of the coming S&D numbers, so Tuesday worked to balance that,” North says.

 

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Monday’s Grain Market Review

On Monday, the CME Group’s farm markets closed lower.

At the close, the July corn futures finished 5½¢ lower at $4.00¾; December futures finished 4½¢ lower at $4.16.

July soybean futures settled 25¼¢ lower at $10.11½; November soybean futures closed 19¼¢ lower at $10.18.

July wheat futures ended 14¾¢ lower at $5.11½.

July soy meal futures finished $11.20 per short ton lower at $382.50. July soy oil futures closed 0.13¢ higher at 30.87¢ per pound. 

In the outside markets, the NYMEX crude oil market is $1.05 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 187 points lower.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says today’s drop in prices is follow-through from last week.

“This is fallout from the lack of agreement in Beijing late last week on the trade talks. Plus, pessimism on NAFTA talks is pressuring prices,” Scoville says. 

“We possibly lose out on business anyway, and right now people are thinking the Chinese will buy as little here as they can. People are probably right on that, but they will still need to buy.”

He adds, “Wheat is lower on buy the rumor and sell the fact, after the tour last week.”

Corn prices are down a bit with the other markets, but still enjoying the strong demand judging by the inspections report today, Scoville says.

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