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Soybeans Close 6¢ Lower Friday

Corn, wheat move lower, too.

DES MOINES, Iowa -- On Friday, the CME Group’s farm markets remain weaker.

At midday, the March corn futures are even at $3.61. May futures are ¼¢ lower at $3.69.

March soybean futures are 5¼¢ lower at $9.79. May soybean futures are 5¼¢ lower at $9.91.

March wheat futures are 2½¢ lower at $4.48.

March soy meal futures are $2.00 per short ton lower at $332.00. January soy oil futures are 0.29¢ lower at 32.61¢ per pound. 

In the outside markets, the NYMEX crude oil market is $0.55 lower, the U.S. dollar is higher, and the Dow Jones Industrials are 413 points lower.

 

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Thursday’s Grain Market Review

On Thursday, the CME Group’s farm futures markets trade lower, as investors continue to skim profits from short positions.

At the close, the March corn futures settled ¼¢ higher at $3.61¾; May futures finished ½¢ higher at $3.70.

March soybean futures closed 10¾¢ lower at $9.85; May soybean futures finished 10½¢ lower at $9.96½.

March wheat futures finished ¾¢ lower at $4.51.

March soy meal futures closed $3.80 per short ton lower at $334. January soy oil futures settled 0.17¢ lower at 32.90¢ per pound. 

In the outside markets, the NYMEX crude oil market is $1.02 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 27 points higher.

USDA released its Weekly Export Sales Report Thursday. The data indicates that the U.S. sold more soybean meal than soybeans.

  • Corn: 1.88 million metric tons vs. the trade’s expectations of between 850,000-1,200,000 mt
  • Soybeans: 409,000 mt vs. the trade’s expectations of between 775,000-1,300,000 mt
  • Wheat: 289,100 mt vs. the trade’s expectations of between 175,000-400,000 mt
  • Soybean meal: 481,900 mt vs. the trade’s expectations of between 175,000-350,000 mt

 

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Wednesday’s Grain Market Review

On Wednesday, the CME Group’s farm markets ended lower, while trimming losses.

Soybeans and wheat prices were lower during the session, compared with how they finished.

At the close, the March corn futures ended even at $3.61; May futures finished ¼¢ lower at $3.69½.

March soybean futures closed 4½¢ lower at $9.95¾; May soybean futures settled 4¼¢ lower at $10.07.

March wheat futures finished 5½¢ lower at $4.51.

March soy meal futures settled $2.80 per short ton lower at $337.70. January soy oil futures finished 0.01¢ lower at 33.07¢ per pound. 

In the outside markets, the NYMEX crude oil market is 12¢ higher, the U.S. dollar is higher, and the Dow Jones Industrials are 73 points higher.

Bob Linneman, Kluis Commodities grain analyst, says there are some bullish fundamental and technical signals forming.

“Persistent dry conditions in the Southern Plains, combined with a dry 30-day forecast, have given control to the bulls. Corn has managed to push 13¢ higher since last Wednesday. More importantly, corn is testing resistance at $3.63 to $3.65. If the bulls can get over $3.65, it would mean a new three-month high. Soybeans have tested short-term support at $9.85, and it continues to hold,” Linneman stated in a note to customers Wednesday. 

On Wedesday, the Energy Information Center released its weekly Ethanol Production Report.

According to EIA data analyzed by the Renewable Fuels Association, ethanol production averaged 1.040 million barrels per day (b/d)—or 43.68 million gallons daily. That is down 23,000 b/d from the week before. The four-week average for ethanol production increased slightly to 1.040 million b/d for an annualized rate of 15.94 billion gallons.
 
Stocks of ethanol were 23 million barrels. That is a 3.4% decrease from last week’s record high, yet reserves remained the second-largest in 37 weeks.
 
There were zero imports recorded for the eighth week in a row.

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Tuesday’s Grain Market Review

On Tuesday, the CME Group’s farm markets settled higher, led by soybean and wheat pits.

At the close, the March corn futures finished 2¾¢ higher at $3.61½; May futures finished 2¾¢ higher at $3.69¾.

March soybean futures finished 8¾¢ higher at $10.00¼; May soybean futures closed 8½¢ higher at $10.11¼.

March wheat futures finished 8¢ higher at $4.57¼.

March soy meal futures settled $3.10 per short ton higher at $340.50. January soy oil futures ended 0.21¢ higher at 33.08¢ per pound. 

In the outside markets, the NYMEX crude oil market is $1.21 lower, the U.S. dollar is lower, and the Dow Jones Industrials are 349 points lower.

Jason Roose, U.S. Commodities analyst, says fundamental factors drive the ags higher.

“Grains continue to trade higher on short covering due to slow producer selling, a dry forecast in Argentina that could lower yield during pod filling, and optimism for stronger exports with continued weakness in the U.S. dollar,” Roose says.

On Tuesday, private exporters reported to the USDA export sales of 132,000 metric tons of corn for delivery to Spain during the 2017/2018 marketing year.

The marketing year for corn began September 1.

 

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Monday’s Grain Market Review

When weather problems hit South America, the soybean market listens.

As a result, today’s CME Group’s soybean futures ended up on a dry weather outlook in Argentina.

At the close, the March corn futures finished 2¼¢ higher at $3.58¾; May futures closed 2¢ higher at $3.67.

March soybean futures ended 6¢ higher at $9.91½; May soybean futures settled 5¾¢ higher at $10.02¾.

March wheat futures closed 8¼¢ higher at $4.49¼.

March soy meal futures finished $1.70 per short ton higher at $337.40. January soy oil futures finished 0.08¢ higher at 32.87¢ per pound. 

In the outside markets, the NYMEX crude oil market is 61¢ lower, the U.S. dollar is higher, and the Dow Jones Industrials are 117 points lower.

On Monday, private exporters reported to the USDA export sales of 115,000 metric tons of corn for delivery to Egypt during the 2017/2018 marketing year.

The marketing year for corn began September 1.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says we are in weather markets in all of these. 

“Soybeans are reacting to outlooks for a dry February in Argentina and some excessive rains in parts of Brazil,” Scoville says. 

Funds and big specs are mostly buying, some producer and spec selling around, he says. 

“Corn should be reacting more to the Argentine weather but is not due to big supplies here. Wheat is all about the U.S. dollar and the dry weather in the Great Plains,” Scoville says.

He adds, “How much farm selling on the rally is hard to decide. I think some moving up here, but not seeing any selling interest from Central America.”

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