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Corn Closed Slightly Higher Friday

Soybeans Dropped 56¢ on the week.

DES MOINES, Iowa --On Friday, the CME Group’s farm markets closed mixed Friday, but lower for the week.

At the close, the September corn futures finished 3¢ higher at $3.66; December futures closed 3¼¢ higher at $3.81.

August soybean futures settled 1¾¢ lower at $9.52, and November soybean futures ended 3¾¢ lower at $9.56.

September wheat futures closed 3¢ lower at $4.54.

December soy meal futures closed $3.20 per short ton lower at $309.40. December soy oil futures settled $0.23 higher at 34.03¢ per pound. 

In the outside markets, the Brent crude oil market is $0.43 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 35 points higher.

For the week, December corn futures lost 7¢, September wheat futures dropped 19½¢, and November soybean futures fell 56½¢.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says that the cooler weather is being ignored. 

“There is a lot of talk that the rains that sent this market south yesterday were really much less than what the radar was presenting,” Scoville says. 

The U.S. dollar is sharply higher and that is hurting buying interest, he says.

“But I think many in the trade were anticipating a short covering rally or something along those lines today. Prices have been going down most of the week and ideas are that some would look to leave.  There remains some interest at buying in all of the markets, as well as we are pretty much at support areas on the charts.”

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Thursday’s Grain Market Review

On Thursday, the CME Group’s soybean market closed sharply lower due to much-needed rain that has fallen throughout the Midwest and crop estimates.

At the close, the September corn futures settled 1¼¢ lower at $3.63½, and December futures finished 1¼¢ lower at $3.77¾.

September soybean futures finished 16¾¢ lower at $9.54; November soybean futures are 17¢ lower at $9.60½.

September wheat futures ended 3¢ lower at $4.57¾.

December soy meal futures closed $2.90 per short ton lower at $312.60. December soy oil futures closed $0.77 lower at 33.80¢ per pound. 

In the outside markets, the Brent crude oil market is $0.53 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 25 points higher.

Dustin Johnson, senior strategist for AgYield, says that crop estimates are moving the markets.

“Informa, private analyst firm, released its crop estimates and have soybeans at 47.2 bushels per acre and corn at 165.9, below the USDA’s July estimates,” Johnson says.

Johnson added, “November 2017 soybean futures prices also had a gap that was widely discussed; may have found some technical pressure down to the $9.58 and below for that reason.”

Also, there are articles pointing to souring trade relations with China and the impact that will have on U.S. exports, Johnson says.

Corn is still holding above $3.74 in the December, which was the June low, could be technically supported, he says.

On Thursday, the USDA Weekly Export Sales Report shows steady to weaker activity.

  • Wheat: 145,500 metric tons (mt) vs. the trade’s expectations of between 300,000 and 500,000 mt
  • Corn: 475,000 mt vs. the trade’s expectations of between 350,000 and 900,000 mt
  • Soybeans: 600,900 mt vs. the trade’s expectations of between 300,000 and 1,000,000 mt
  • Soy meal: 144,800 mt vs. the trade’s expectations of between 25,000 and 175,000 mt         

 

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Wednesday’s Grain Market Review

Grains and soybeans closed higher Wednesday, following oversold ideas from yesterday and private analyst firm INTL FCStone estimating lower production and yields compared with USDA’s July projections. 

FCStone said in a report on Tuesday that the corn crop will come in at 13.59 billion bushels on yields of 162.8 bushels an acre. That’s well below USDA’s July outlook for 14.255 billion bushels on yields of 170.7 bushels an acre.

The commodity brokerage pegged soybean output at 4.235 billion bushels on yields of 47.7 bushels an acre. The USDA last month forecast production at 4.26 billion bushels on yields of 48 bushels an acre.

Prices also may be rising as the value of the dollar declines. The greenback was down 0.1% in early trading Wednesday, and earlier this week, it touched the lowest level since January 2015. That, in turn, boosts purchasing power for overseas buyers and may increase demand for U.S. corn, soybeans, and wheat. 

At the close, the September corn futures finished 2½¢ higher at $3.65, and December futures finished 2½¢ higher at $3.79.

August soybean futures ended 6½¢ higher at $9.70¾; November soybean futures settled 5¾¢ higher at $9.77½.

September wheat futures closed ½¢ lower at $4.60.

December soy meal futures closed $1 per short ton higher at $315.50. December soy oil futures closed 0.24¢ higher at 34.52¢ per pound. 

In the outside markets, the Brent crude oil market is 28¢ per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 41 points higher.

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Tuesday’s Grain Market Review

DES MOINES, Iowa -- On Tuesday, the CME Group’s farm markets closed sharply lower, under heavy pressure from the weekly crop ratings.

At the close, the September corn futures finished 8¼¢ lower at $3.62½, and December futures finished 8¼¢ lower at $3.76½.

August soybean futures ended 35¼¢ lower at $9.64¼; November soybean futures settled 35½¢ lower at $9.71¾.

September wheat futures closed 13¼¢ lower at $4.61¼.

December soy meal futures closed $10.40 per short ton lower at $310.30. December soy oil futures closed 0.84¢ lower at 33.97¢ per pound. 

In the outside markets, the Brent crude oil market is $1.23 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 82 points higher at 21,973 points.

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

“Investors are taking premium out with better crop rating in the soybeans, indicating that the size of the crop is getting bigger. Also, long-term weather outlooks are price-negative with a cooler wet pattern, which will aid crop development. We’re also seeing limit midsummer price resistance levels.”

 

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Monday’s Grain Market Review

On Monday, the CME Group’s farm futures closed off its daily lows, but remain without any fresh bullish news.

At the close, the September corn futures finished 3¼¢ lower at $3.70, and December futures finished 3¼¢ lower at $3.84.

September soybean futures settled 6¼¢ lower at $9.99½; November soybean futures closed 5¾¢ lower at $10.07¼.

September wheat futures closed 6½¢ lower at $4.74½.

December soy meal futures finished $3.10 per short ton lower at $325.40. December soy oil futures closed 0.11¢ higher at 35.13¢ per pound. 

In the outside markets, the Brent crude oil market is 46¢ per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 79 points higher.

Deanne Hawthorne-Lahre, StatFutures cofounder and grain trader, says the markets are reacting to less damage on last week’s wheat tour and weather.

“That crop tour did not show as much stress to the spring wheat as the pit expected. Also, the cooler weather and a bit of rain are keeping the rallies at bay,” Hawthorne-Lahre says.

“Because the Minneapolis wheat market was holding up the grain structure and failed to break my second-tier frame structure and came hard off the highs, this dampened the run-up across the other wheats and corn,” she says.

The soybean market is hanging tough at $10 per bushel for the moment, and corn is comfortable at that $3.80-ish level, she says.

“The clock is ticking on the corn and soybean crops now, and supplies seem adequate. It’s going to be a long fall, unless something changes,” Hawthorne-Lahre says.

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