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Corn, Soybean Prices Weaken Friday

The U.S. dollar is higher.

DES MOINES, Iowa -- On Friday, the CME Group’s farm markets weaken as the session moves on.

At midsession, the July corn futures are 2½¢ lower at $3.91. December futures 2¢ lower at $4.11.

July soybean futures are 1½¢ lower at $10.17. November soybean futures are ¾¢ lower at $10.33.

July wheat futures are 7¼¢ lower at $5.19.

July soy meal futures are $2.20 per short ton lower at $373.10. July soy oil futures are 0.15¢ higher at 31.27¢ per pound. 

In the outside markets, the NYMEX crude oil market is $0.37 lower, the U.S. dollar is higher, and the Dow Jones Industrials are 217 points higher.

On Friday, the USDA released its Weekly Export Sales Report delayed due to the Memorial Day holiday. Corn and soybean sales were strong, beating trade expectations.

  • Corn = 1.142 million metric tons vs. the trade’s estimate of between 700,000 and 1,100,000 metric tons
  • Wheat = 300,400 mt. vs. the trade’s estimate of between 150,000 and 400,000 mt.
  • Soybeans = 1.045 million mt vs. the the trade’s expectation of between 200,000 and 600,000 mt.
  • Soybean meal = 143,000 mt. vs. the trade’s expectation of between 125,000 and 250,000 metric tons.

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Thursday’s Grain Market Review

On Thursday, the CME Group’s farm markets end mostly higher.

At the close, July corn futures finished ½¢ higher at $3.94; December futures are ½¢ higher at $4.13.

July soybean futures are 4½¢ lower at $10.18½; November soybean futures settled 2¼¢ lower at $10.34¼.

July wheat futures finished 4¼¢ higher at $5.26¼.

July soy meal futures closed $1.60 per short ton lower at $375.30. July soy oil futures finished 0.36¢ lower at 31.12¢ per pound. 

In the outside markets, the NYMEX crude oil market is $1.04 lower, the U.S. dollar is lower, and the Dow Jones Industrials are 218 points lower.

Al Kluis, Kluis Advisors Group, says the low Wednesday could provide support to the downside, but rallies will be hard to find.

“The market will have a tough time rallying on crop ratings this summer. Last year, we saw ratings drop throughout the year, yet we had a record yield,” Kluis stated in a note to customers.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says investors are eyeing trade fears again as tariffs on aluminum and steel against Canada and Mexico were announced today. 

“Overall, you kind of get the feeling that these guys want a problem everywhere. Nothing much going on here today, it is end of the month and a lot of position-squaring is going on,” Scoville says.

Scoville adds, “The truckers’ strike in Brazil is collapsing a bit, although still no deliveries at Santos port. U.S. crop conditions are good, although too much rain in the Southeast and still too dry in Texas.  The Midwest is mostly good. The Drought Monitor showed improved conditions, but still the drought is out there. Mostly this is end-of-month stuff today.”

 

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Wednesday’s Grain Market Review

On Wednesday, the CME Group’s farm markets closed off daily lows.

At the close, July corn futures finished 6½¢ lower at $3.93½; December futures closed 5¾¢ lower at $4.13.

July soybean futures ended 7½¢ lower at $10.23; November soybean futures are 6¢ lower at $10.36½.

July wheat futures finished 14½¢ lower at $5.22.

July soy meal futures closed $3.30 per short ton lower at $376.90. July soy oil futures finished 0.27¢ higher at 31.48¢ per pound. 

In the outside markets, the NYMEX crude oil market is $1.53 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 343 points higher.

Al Kluis, Kluis Advisors, says the bears are trying to change the market’s direction.

“Grains were overbought. This pullback will allow the momentum indicators to return to midrange. How much more of a pullback we see from here will be driven by weather forecasts,” Kluis wrote in a note to customers Wednesday.

 

 

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Tuesday’s Grain Market Review

On Tuesday, the CME Group’s farm markets finished weaker, with a broad-based sell-off occurring.

At the close, July corn futures finished 6¢ lower at $4; December futures finished 6¢ lower at $4.19.

July soybean futures ended 11¢ lower at $10.30; November soybean futures closed 11¢ lower at $10.42½.

July wheat futures closed 6¼¢ lower at $5.36½.

July soy meal futures ended 10¢ per short ton lower at $380.20. July soy oil futures finished 0.13¢ lower at 31.21¢ per pound. 

In the outside markets, the NYMEX crude oil market is $1.11 lower, the U.S. dollar is higher, and the Dow Jones Industrials are 437 points lower.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says the farm markets hit a wall.

“The markets were up overnight on the weather, but broke when the Trump administration said it was continuing to work toward tariffs on China, even as the two sides come to an agreement,” Scoville says.  

He adds, “Still trade fears have been running the show. Still dry in the Texas Panhandle and the Black Sea for wheat, and dry in western sections of the Corn Belt. Areas east of the Mississippi should get rains in the next few days, so no concerns there. Ideas are that the U.S. corn and bean crop conditions are fine.”

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