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Corn, Wheat Markets Pull Soybeans Higher Thursday

Soybeans find a way to finish stronger, keeping its week’s momentum going.

DES MOINES, Iowa -- On Thursday, the CME Group's farm markets close higher, after tradig mixed most of the session.

At the close, the September corn futures finished 4¢ higher at $3.51¼. December futures closed 4¢ higher at $3.65.

August soybean futures ended 3¾¢ higher at $8.46. November soybean futures finished 3¾¢ higher at $8.61½.

September wheat futures ended 9¾¢ higher at $5.04¼.

August soy meal futures finished $0.60 per short ton higher at $328.80. August soy oil futures finished 0.24¢ lower at 27.83.

In the outside markets, the NYMEX crude oil market is $0.77 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 83 points lower.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says that wheat and corn markets are celebrating good export sales.

“Also, the corn market is benefiting from the fact that U.S. corn is cheap enough. China getting blasted by the White House Economic Council Larry Kudlow for being the ones to delay a solution has not helped beans action. China is asking who speaks for the U.S. government? No one knows,” Scoville says.

He adds, “No movement with China, but it looks like a deal could come together with Mexico.  Still pretty quiet for us here, but people starting to think that grains and soybeans have or will be seeing a bottom.”

On Thursday, the USDA released its Weekly Export Sales Report showing strong demand for corn and soybeans.

  • Corn = 1.415 million metric tons vs. the trade’s expectations of between 500,000 and 1,000,000 mt.
  • Soybeans = 865,000 mt. vs. the trade’s expectations of between 300,000 and 1,000,000 mt.
  • Wheat = 300,000 mt. vs. the trade’s expectations of between 150,000 and 500,000 mt.
  • Soymeal = 222,000 mt. vs. the trade’s expectations of between 50,000 and 350,000 mt.

 

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Wednesday’s Grain Market Review

On Wednesday, the CME Group’s corn and soybean markets end slightly higher.

At the close, the September corn futures finished 1¢ higher at $3.47. December futures ended 1¢ higher at $3.61.

August soybean futures closed 2¾¢ higher at $8.42¼. November soybean futures finished 2½¢ higher at $8.57¾.

September wheat futures finished 3¼¢ lower at $4.94½.

August soy meal futures settled $0.90 per short ton lower at $328.20. August soy oil futures settled 0.34¢ higher at 28.07.

In the outside markets, the NYMEX crude oil market is $0.68 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 84 points higher.

 

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Tuesday’s Grain Market Review

On Tuesday, the CME Group’s farm markets push higher in reaction to the USDA’s weaker crop ratings.

At the close, September corn futures finished 4½¢ higher at $3.46¼; December futures settled 4½¢ higher at $3.59¾.

August soybean futures closed 10¢ higher at $8.39½; November soybean futures ended 9½¢ higher at $8.55¼.

September wheat futures closed 9¼¢ higher at $4.97¾.

August soy meal futures settled unchanged at $329.10. August soy oil futures settled 0.09¢ higher at 27.73¢.

In the outside markets, the NYMEX crude oil market is 7¢ lower, the U.S. dollar is higher, and the Dow Jones Industrials are 55 points higher.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says investors are buying back positions.

“It looks like some good-sized short covering coming into the pit,” Scoville says. 

The trade got worse-than-expected condition ratings last night, especially corn, and that seems to be the big point in the market today, Scoville says. 

“The weather has been less than perfect so an uneven crop is appearing. Trade problems have taken a back seat to the weather for now, and why not? We have dropped a whole lot in the last month to six weeks because of Trump and his tariffs. The tariffs will limit upside, but these prices should start to attract new demand,” Scoville says.

 

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Monday’s grain market review

On Monday, the CME Group’s soybean market jumps on global trade talk.

At the close, September corn futures finished ½¢ higher at $3.41¾; December futures finished ½¢ higher at $3.55¼.

August soybean futures ended 10¾¢ higher at $8.29½; November soybean futures closed 11½¢ higher at $8.45¾.

September wheat futures closed 8½¢ lower at $4.88½.

August soy meal futures settled $3.10 per short ton higher at $329.10. August soy oil futures closed 0.33¢ lower at 27.64¢.

In the outside markets, the NYMEX crude oil market is $2.65 lower, the U.S. dollar is lower, and the Dow Jones Industrials are 10 points higher.

Jason Roose, U.S. Commodities, says the farm markets are up on a rumor of trade negotiations.

“Grains are having a nice relief rally today led by the soybean market with rumors that China-U.S. trade negotiations are in sight. Also, lower crop ratings are expected in today’s report, which would confirm the corn and bean crop could be as large as trade estimates,” Roose says.

Scott Shellady, managing director TJM Europe LLP, says the soybean market will trade rumors until something solid is in the news.

“Today, we have had a small bounce back, but this story is far from over,” Shellady says.

Shellady says it’s important to keep in mind that the trade tariffs with China have done some real damage.

“We’ve gone from one-year highs in the soybean market to 10-year lows. We’re seeing a 22% hit in farm revenue value for bean farmers, an 18% hit in corn, although China does not import corn. That roughly equates to $20 billion,” Shellady says.

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