Corn, Wheat Markets Close Slightly Higher Friday

The U.S. dollar is weaker.

DES MOINES, Iowa -- On Friday, the CME Group’s soybean market stayed lower, while the grain markets reversed higher.

At the close, the May corn futures finished 1¼¢ higher at $3.77¼. July futures closed 1½¢ higher at $3.85¾.

May soybean futures settled 1½¢ lower at $10.28¼. July soybean futures settled 1½¢ lower at $10.39.

May wheat futures finished 4½¢ higher at $4.60¼.

May soy meal futures finished $9.90 per short ton higher at $377.90. January soy oil futures closed 0.46¢ lower at 31.42¢ per pound. 

In the outside markets, the NYMEX crude oil market is $1.29 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 42 points lower.

On Friday, the USDA announced the Weekly Export Sales Report, delayed from yesterday. Corn and soybean sales were within the trade expectations, while wheat sales beat expectations.

  • Corn = 1.48 mmt vs. the trade’s expectations of between 1,000,000 and 2,600,000 mt.
  • Soybeans = 899,000 mt. vs. the trade’s expectations of between 700,000 and 1,600,000 mt.
  • Wheat = 428,600 mt. vs. the trade’s expectations of between 200,000 and 400,000 mt.

 

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Thursday’s Grain Market Review

On Thursday, the CME Group’s farm markets ended stronger, despite President Trump slapping tariffs on China.

At the close, the May corn futures finished 1¢ higher at $3.76; July futures settled 1¼¢ higher at $3.84¼.

May soybean futures finished even at $10.29¾; July soybean futures closed ¼¢ higher at $10.40¾.

May wheat futures closed 2¼¢ higher at $4.55¾.

May soy meal futures finished $3.50 per short ton higher at $368.00. January soy oil futures closed 0.49¢ lower at 31.88¢ per pound. 

In the outside markets, the NYMEX crude oil market is 91¢ lower, the U.S. dollar is higher, and the Dow Jones Industrials are 421 points lower.

Due to the inclement weather closing the government this week, the USDA’s weekly Export Sales Report has been delayed until tomorrow.

Corn futures are trading with very light volume, while the soybean futures are trading both sides of zero, Stewart-Peterson, Inc., reports in its midday comments to customers.

“In fact, many of the commodity and currency markets are at a standstill awaiting market reaction from an expected announcement from President Trump about trade tariffs and U.S. biofuel policy,” the firm stated in a note to customers.

May corn is unchanged at a pivotal price area at $3.75. December is steady at 3.96¾. Heading into today’s trade, managed money was seen net long an estimated 177,000 corn contracts, the private analyst firm stated.

“Soybeans are two-sided around Wednesday’s settlement prices, ahead of President Trump’s signing of an issue later today, including sanctions on up to $60 billion worth of Chinese imports ... a move that is expected to trigger some form of retaliation from one of the world’s leading importers of U.S. ag commodities,” Stewart-Peterson Inc. stated in a midday report to customers. The firm’s comments added, “Many believe the tariff talk is simply posturing with little actual substance. Time will tell. Heading into today’s trade, managed money was net long an estimated 204,000 contracts of soybeans; 102,000 lots of soy meal; and net short 15,000 lots of soy oil.”

Cory Bratland, Kluis Commodities broker, says the China news – not Argentina’s drought – is pressuring the soybean market.

“The soybean market is trying to rally, but China is talking about imposing tariffs on soybeans from the U.S. I think the crop damage in South America for soybeans is pretty much old news. The bulk of the damage has been done, and the market has priced that crop reduction into the marketplace,” Bratland stated in a daily note to customers.

 

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Wednesday’s Grain Market Review

On Wednesday, the CME Goup’s farm markets finished stronger.

Analysts quote missed rains in Argentina as the bullish factor for soybeans. Meanwhile, expected rain for the U.S. wheat next week kept the lid on that market’s gains.

At the close, the May corn futures finished ½¢ higher at $3.75; July futures finished ½¢ higher at $3.83.

May soybean futures finished 1½¢ higher at $10.29¾; July soybean futures finished 1½¢ higher at $10.40½.

May wheat futures ended ½¢ higher at $4.53½.

May soy meal futures closed $2.80 per short ton higher at $364.50. January soy oil futures closed 0.63¢ higher at 32.37¢ per pound. 

In the outside markets, the NYMEX crude oil market is $1.78 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 97 points higher.

On Wednesday, private exporters reported to the USDA export sales of 138,000 metric tons of corn for delivery to South Korea during the 2017/2018 marketing year.

The marketing year for corn began September 1.

 

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Tuesday’s Grain Market Review

After a double-digit loss yesterday, the buyers scared off the sellers Tuesday, as the CME Group’s farm markets finished mostly higher.

At the close, the May corn futures finished ½¢ lower at $3.74½; July futures settled ¾¢ lower at $3.82½.

May soybean futures finished 5¾¢ higher at $10.28; July soybean futures ended 5½¢ higher at $10.39.

May wheat futures closed 2¼¢ higher at $4.53.

May soy meal futures settled $3.10 per short ton higher at $361.70. January soy oil futures finished 0.32¢ lower at 31.74¢ per pound. 

In the outside markets, the NYMEX crude oil market is $1.36 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 154 points higher.

Jason Roose, U.S. Commodities, says the markets have stabilized today. “After a profittaking Monday, potential harvest delays in Brazil, and continued strong corn exports, the grains have support. Plus, support is coming from a big crop report at the end of the month and an unknown growing season,” Roose says.

On Tuesday, private exporters reported to the USDA export sales of 110,000 metric tons of corn for delivery to Peru during the 2017/2018 marketing year.

The marketing year for corn began September 1.

 

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Monday’s Grain Market Review

On Monday, the CME Group soybean futures market dropped double digits, as rains in Argentina and the funds’ positions apply pressure.

At the close, the May corn futures finished 7¾¢ lower at $3.75; July futures ended 7¾¢ lower at $3.83¼.

May soybean futures finished 27¢ lower at $10.22; July soybean futures ended 26¾¢ lower at $10.33½.

May wheat futures closed 17¢ lower at $4.50¾.

May soy meal futures closed $14.30 per short ton lower at $358.60. January soy oil futures finished 0.08¢ higher at 32.06¢ per pound. 

In the outside markets, the NYMEX crude oil market is 27¢ lower, the U.S. dollar is lower, and the Dow Jones Industrials are 423 points lower.

Over the weekend, some rain fell in the hard-hit soybean areas of Argentina. Although not enough moisture was felt to turn that country’s soybean crop around, the psychology of the market sees the light rain as bearish.

Jack Scoville,The PRICE Futures Group’s senior market analyst, says the path the soybean market is taking can be blamed on the rains in Argentina.

“It rained in Argentina over the weekend, including in some of the driest areas. Probably too late to help corn at all, but it will help stabilize the situation in beans. Plus, it is rain, and markets do not go up when it rains, and we are promoting a drought,” Scoville says.

The weather models are showing measured rainfall for Argentina in the next 10 days to two weeks, according to WxRisk.com.

Also, the Committments of Traders Report on Friday noted that funds are now long the corn market with 233,000 contracts. The funds are holding 208,000 long contracts in soybeans. For wheat, the funds are short that market by 6,000 contracts.

Al Kluis, Kluis Commodities, says the market will be eyeing South American weather for price movement. “For soybean prices, it’s about how much rain will hit (and where) in Argentina later this week,” Kluis stated in a note to customers. The pull-back in corn is healthy long term for the corn market. Prices have become very overbought.”

On Monday, the USDA announced fresh corn sales. Private exporters reported to the USDA the following activity:

  • Export sales of 206,000 metric tons of corn for delivery to Japan during the 2018/2019 marketing year 
  • Export sales of 115,000 metric tons of corn for delivery to unknown destinations during the 2017/2018 marketing year 

The marketing year for corn began September 1.

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