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Soybeans Maintain Strength in the $10 Range

Wheat closed double-digits lower.

DES MOINES, Iowa -- On Friday, the CME Group’s soybean market finished stronger, while corn finished at daily lows.

At the close, the May corn futures finished 4¢ lower at $3.82 3/4. July futures settled 3 1/2¢ lower at $3.91.

May soybean futures ended 8 3/4¢ higher at $10.49 1/2.  July soybean futures closed 9¢ higher at $10.60 1/4.

May wheat futures closed 11¢ lower at $4.85.

May soy meal futures finished $1.90 per short ton higher at $372.90. January soy oil futures ended 0.08 lower at 31.98¢ per pound. 

In the outside markets, the NYMEX crude oil market is $1.09 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 102 points higher.

Mike North, President Commodity Risk Management Group, says that global crop weather is supporting the bean market.

“Forecast rain for Argentina is now in question and thus rebuilding some weather premium into the soybean market.  Meanwhile rainfall across Europe, the Black Sea region, and Russia are building prospects for much larger wheat crops and other cereal grains. Additionally, Friday trade continues to welcome sellers into the corn and wheat markets ahead of the weekend,” North says. 

 

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Thursday’s Grain Market Review

On Thursday, the CME Group’s farm markets lean on the upward movement of soybeans.

At the close, the May corn futures finished 2¢ lower at $3.86¾. July futures finished 2¼¢ lower at $3.94½.

May soybean futures settled 8½¢ higher at $10.40¾. July soybean futures finished 8½¢ higher at $10.40¾.

May wheat futures fiinished 10¢ lower at $4.78¾.

May soy meal futures closed $0.10 per short ton higher at $371.00.

January soy oil futures closed 0.38¢ higher at 32.06¢ per pound. 

In the outside markets, the NYMEX crude oil market is $0.25 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 150 points higher.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says that the market is supported by weather and demand today.

“Even though corn is fading today, it has the big demand for sure. Soybeans too, and the forecasts are still mostly dry for grains areas in Argentina, perhaps too much rain now for southern Brazil to slow the harvest there. Forecasts for some rain in the next couple of weeks for Kansas and the export sales report killing the wheat.”

 

 

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Wednesday’s Grain Market Review

On Wednesday, the CME Group’s farm markets drop.

At the close, the May corn futures settled 3¢ lower at $3.88 3/4. July futures ended 3¢ lower at $3.96 3/4.

May soybean futures finished 16 1/2¢ lower at $10.32 3/4.  July soybean futures closed 16 1/2¢ lower at $10.43.

May wheat futures ended 2 1/4¢ higher at $4.88 3/4.

May soy meal futures closed $4.60 per short ton lower at $370.90. January soy oil futures finished 0.51 lower at 31.71¢ per pound. 

In the outside markets, the NYMEX crude oil market is $0.16 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 147 points lower.

Jason Ward, Northstar Commodity Managing Director, says the ag markets are digesting bearish news.

“Weakness in the soybean market is driven by the best rain chance in quite some time today for Argentina, and then another chance Saturday,” Ward says.

He adds, “A little more pressure, on soybeans, as a result of the recently released Allendale Survey suggesting over 92 million 2018 U.S. soybean acres.”
 
“Overall, the weaker markets are a result of weather, mainly, in my view, and some profit taking by swelling length in corn/soy spread,” Ward says.

Bob Linneman, Kluis Commodities analyst, says the soybean market is hitting some headwinds.

"Soybean futures will have a hard time sustaining a rebound rally if soybean meal and soybean bull spreads do not move higher,” Linneman stated in a daily note to customers. The funds held a very large position as of the most recent Commitments of Traders Report. They may use rallies to lighten long positions until the month-end Planting Intentions Report."

 

 

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Tuesday’s Grain Market Review

On Tuesday, the CME Group’s grain market finished stronger.

At the close, the May corn futures finished 1¢ higher at $3.91¾; July futures finished 1¼¢ higher at $3.99¾.

May soybean futures closed 7¾¢ higher at $10.48; July soybean futures ended 8¢ higher at $10.59½.

May wheat futures ended 4¼¢ lower at $4.86½.

May soy meal futures closed $5.10 per short ton higher at $375.50. January soy oil futures ended 0.47¢ higher at 32.22¢ per pound. 

In the outside markets, the NYMEX crude oil market is 65¢ lower, the U.S. dollar is lower, and the Dow Jones Industrials are 57 points lower.

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

• Optional origin sales of 210,000 metric tons of corn for delivery to South Korea during the 2017/2018 marketing year. An optional origin contract provides that the origin of the commodity may be the U.S. or one or more other exporting countries.

The marketing year for corn began September 1.

Jason Roose, U.S. Commodities grain analyst, says exports help markets stay higher.

“The strength in the grains continues to focus on improved demand from the corn. The dry conditions in Argentina have sparked trade thoughts that Argentina will have limited grain exports,” Roose says.

 

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Monday’s Grain Market Review

On Monday, the CME Group’s farm futures prices end higher.

At the close, the May corn futures finished ¼¢ higher at $3.90¾; July futures finished ½¢ higher at $3.98½.

May soybean futures ended 1¾¢ higher at $10.41; July soybean futures closed 2¾¢ higher at $10.51.

May wheat futures finished 1½¢ higher at $4.90¾.

May soy meal futures closed $3.20 per short ton lower at $370.40. January soy oil futures closed 0.16¢ higher at 31.75¢ per pound. 

In the outside markets, the NYMEX crude oil market is 68¢ lower, the U.S. dollar is lower, and the Dow Jones Industrials are 123 points lower.

On Friday, the CFTC report indicated that money managers pushed their bullish bets on corn to the highest level in almost two years and soybeans to the highest since January 2017.

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

  • Export sales of 107,752 metric tons of corn for delivery to Japan during the 2017/2018 marketing year 
  • Export sales of 254,800 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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