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Soybeans Close 13¢ Higher Friday

The U.S. dollar is favorably lower.

DES MOINES, Iowa -- On Friday, the CME Group’s farm markets closed mostly higher, led by strong demand for soybeans.

At the close, the December corn futures finished 3¼¢ higher at $3.53½, and March futures ended 3¢ higher at $3.66.

November soybean futures closed 13½¢ higher at $9.84¼. January soybean futures settled 13½¢ higher at $9.94½.

September wheat futures ended 3¢ lower at $4.49½. December soy meal futures closed $6.10 per short ton higher at $319.00.

December soy oil futures finished 0.12¢ lower at 34.22¢ per pound. 

In the outside markets, the Brent crude oil market is $0.07 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 24 points lower.

After strong weekly export sales reported yesterday, the USDA announced Friday that private exporters reported to the USDA export sales of 190,000 metric tons of soybeans for delivery to Mexico during the 2017-2018 marketing year.

The marketing year for soybeans began September 1.

Jason Roose, U.S. Commodities grain analyst, says demand is the story of the day.

“Soybeans continue to find support with strong demand, weak U.S. dollar, and dry weather concerns in Brazil mounting,” Roose says.

Brazilian producers have been authorized to start planting the 2017-2018 soybean crop since September 10, in Paraná state. The state of Mato Grosso authorized the beginning of planting on September 15. However, in many areas farmers are delaying planting due to lack of rainfall.
 
According to AgRural’s first soybean plantation survey for the 2017-2018 harvest, only 0.3% of the estimated soybean area was planted as of September 21.

According to last year’s plantation survey, on September 29, 2016, planting was at 5%.
 
“Cautious producers have preferred to wait for the arrival and regularization of rainfall, thus reducing the risk of having to replant the area later,” AgRural said in a statement.

Weather forecast

The weather forecast indicates that it will rain in the major soybean producing regions in October. According to Climatempo, the humidity will be favorable for soybean planting soon.
 
In the Central-West region of Brazil, after a long period of drought in September, rainfall is expected to return to the states of Mato Grosso and Mato Grosso do Sul. Rainfall is also forecast for Paraná, the second-largest soybean producing state, which is located in the southern region of Brazil.

 
Soybean production

The area planted with soybeans is expected to grow 1.8% in the 2017-2018 harvest to 34.5 million hectares. According to AgRural’s estimate, production is expected to fall by 3.8% to 109.7 million tonnes.

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Darlene Santiago, SF-Brasil editor contributed to this story.

 

 

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Thursday’s Farm Markets Review

On Thursday, the farm markets gained strength, ending slightly higher.

At the close, the December corn futures settled 1¢ higher at $3.50¼, and March futures finished ½¢ higher at $3.63.

November soybean futures closed ¾¢ higher at $9.70¾; January soybean futures settled ½¢ higher $9.81.

September wheat futures ended 2¾¢ higher at $4.52½.

December soy meal futures settled $2.80 per short ton higher at $312.90. December soy oil futures closed 0.57¢ lower at 34.34¢ per pound. 

In the outside markets, the Brent crude oil market is 14¢ lower, the U.S. dollar is lower, and the Dow Jones Industrials are 35 points lower.

The weekly Export Sales Report released Thursday shows soybean sales beat, corn missed, and wheat came within trade expectations.

  • Corn: 526,900 metric tons vs. the trade’s expectations of between 550,000 and 1,100,000 mt
  • Soybeans: 2.33 mmt vs. the trade’s expectations of between 1,000,000 and 1,600,000 mt
  • Wheat: 307,200 mt vs. the trade’s expectations of between 150,000 and 450,000 mt
  • Soybean meal: 172,400 mt vs. the trade’s expectations of between 75,000 and 250,000 mt  

 

Separetly, the USDA announced private exporters reported to the U.S. Department of Agriculture export sales of 132,000 metric tons of soybeans for delivery to China during the 2017-2018 marketing year.

The marketing year for soybeans began September 1.

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Wednesday’s Grain Market Review

On Wednesday, the CME Group’s farm futures backed off earlier highs but still finished slightly higher.

Big demand announced Wednesday is underpinning this higher soybean market.

At the close, the December corn futures settled 1¾¢ higher at $3.50, while March futures ended 1¾¢ higher at $3.62.

November soybean futures settled 4½¢ higher at $9.70; January soybean futures finished 4½¢ higher $9.80.

September wheat futures ended 6¾¢ higher at $4.49¾.

December soy meal futures closed $1.40 per short ton higher at $310.10. December soy oil futures finished 0.15¢ higher at 34.91¢ per pound. 

In the outside markets, the Brent crude oil market is 82¢ higher, the U.S. dollar is higher, and the Dow Jones Industrials are 25 points lower.

On Wednesday, private exporters reported to the USDA the following activity:

  • Export sales of 132,000 metric tons of soybeans for delivery to China during the 2017-2018 marketing year.
  • Export sales of 1,080,000 metric tons of soybeans for delivery to unknown destinations. Of the total, 960,000 metric tons is for delivery during the 2017-2018 marketing year and 120,000 metric tons is for delivery during the 2018-2019 marketing year.

The marketing year for soybeans began September 1.

Mike North, Commodity Risk Management Group, says China’s insatiable appetite for U.S. soybeans is important for the markets.

“The Chinese purchase is certainly helping this along, but it is aided by technical support that has been building in corn at levels just below $3.50. A trend line has been developing and yesterday's test of that line invited buyers,” North says.

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Tuesday’s Grain Market Review

On Tuesday, the CME Group’s farm futures market closed off daily lows, remain lower.

At the close, the December corn futures finished 3¼¢ lower at $3.48¼, and March futures settled 3¼¢ lower at $3.60¾.

November soybean futures ended 2¼¢ lower at $9.65½; January soybean futures settled 2¢ lower $9.76.

September wheat futures closed ½¢ lower at $4.43.

December soy meal futures finished $3.90 per short ton lower at $308.70. December soy oil futures settled 0.33¢ higher at 34.76¢ per pound. 

In the outside markets, the Brent crude oil market is 40¢ lower, the U.S. dollar is lower, and the Dow Jones Industrials are 51 points higher.

Pete Meyer, S&P Global senior market analyst, says the main topic of conversation is the early yield reports from producers. 

“So far, the reports more often than not have contained the words ‘better than expected.’ This is obviously subjective to what producers thought their crops would yield before getting into the combine, but it does have the market a bit on edge after all the arguments around the recent high yields posted by USDA.” 

Meyer adds, “While lower today, we expect that soybeans will continue to outperform corn. Soybean weakness is also being attributed to the lack of an export sale announcement this morning, but you can’t expect one of those every day.”

Jason Roose, U.S. Commodities grain analyst, agrees that grains are trading mixed today with harvest and yields dictating direction.

“Plus, slow farmer selling will limit the downside, and light exports kept pressure on the grains early,” he says.

 

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Monday’s Grain Market Review

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

At the close, the December corn futures settled 3¼¢ lower at $3.51, and March futures finished 3¼¢ lower at $3.64.

November soybean futures closed 1¢ lower at $9.67; January soybean futures settled 1¢ lower $9.78.

September wheat futures ended 5½¢ lower at $4.43½.

December soy meal futures closed $1.20 per short ton higher at $312.60. December soy oil futures finished 0.38¢ lower at 34.43¢ per pound. 

In the outside markets, the Brent crude oil market is 8¢ higher, the U.S. dollar is higher, and the Dow Jones Industrials are 64 points higher.

On Monday, private exporters reported to the USDA the following activity:

  • Export sales of 261,000 metric tons of soybeans for delivery to China during the 2017-2018 marketing year
  • Export sales of 126,000 metric tons of soybeans for delivery to unknown destinations during the 2017-2018 marketing year

The marketing year for soybeans and corn began September 1.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says soybeans have been higher on the big demand reported today, plus talk of delayed planting in Brazil from dry weather there. 

“In the end, any delayed planting means less corn will be planted, as producers will worry that they can’t get the corn made before the dry weather starts. But for now, it is a beans story,” Scoville says. 

“Corn and wheat could use a big dose of demand news. Yield reports appear to be coming in below last year but are still considered strong given the weather in much of the Midwest this year. Market does not seem to have much desire to go far in either direction for now,” he says.

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