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Grains Higher at Midday on Weakened Dollar, Beans Drop After Price Runup

Grains Turn Upward as Greenback Continues Slide.

AUSTIN, Texas -- Wheat and corn futures were higher in midday trading Friday while soybeans declined.

Grains rose on speculation that the weaker dollar, which overnight fell to a new three-year low, will boost export demand for U.S. agricultural products. The dollar fell earlier this week after Treasury Secretary Steven Mnuchin said the dollar value isn’t a concern and that a weaker greenback was positive for trade.

The currency was down another 0.5% in early trading today despite President Trump and Mnuchin insisting they want a strong dollar. 

Soybeans, meanwhile, fell as speculative investors liquidate their long positions, or bets on higher prices, and sell contracts after prices jumped to the highest level in seven weeks on Thursday. 

Wheat for March delivery rose 5¾¢ to $4.40¼ a bushel in early trading Friday. Kansas City futures added 8¼¢ to $4.43¼ a bushel. 

Corn futures added ½¢ to $3.55¾ a bushel.

March soybean futures dropped 3¾¢ to $9.88½ a bushel. Soy meal futures lost $3.90 to $336.50 a short ton, and March soy oil futures rose 0.35¢ to 32.85¢ per pound. 

In the outside markets, the NYMEX crude oil market is 59¢ higher, the U.S. dollar was again weaker, and the Dow Jones Industrials are 115 points higher.

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Thursday’s Grain Market Review

DES MOINES, Iowa -- On Thursday, the CME Group’s farm markets gave up earlier gains to finish weaker.

The soybean market hit a seven-week high before selling off. Because it ended even, the soybean market just missed being up for the most consecutive trading sessions in six years.

At the close, the March corn futures finished 1¼¢ lower at $3.55¼; May futures ended 1¢ lower at $3.63.

March soybean futures closed even at $9.92¼; May soybean futures closed even at $10.03¾.

March wheat futures ended 1½¢ higher at $4.34½.

March soy meal futures settled $1.60 per short ton lower at $340.40. January soy oil futures finished 0.18¢ lower at 32.50¢ per pound. 

In the outside markets, the NYMEX crude oil market is 21¢ lower, the U.S. dollar is higher, and the Dow Jones Industrials are 82 points higher.

 

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Wednesday’s Grain Market Review

On Wednesday, the CME Group’s farm markets built up a lot of strength.

At the close, the March corn futures finished 5¼¢ higher at $3.56½; May futures finished 5¢ higher at $3.64¾.

March soybean futures closed 6¢ higher at $9.92¼; May soybean futures finished 6¢ higher at $10.03.

March wheat futures closed 11½¢ higher at $4.33. March soy meal futures ended $2.40 per short ton higher at $342.

January soy oil futures closed 0.16¢ higher at 32.68¢ per pound. 

In the outside markets, the NYMEX crude oil market is $1.31 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 51 points higher.

Jason Ward, Northstar Commodity managing director, says outside markets are helping the ag markets.

“The currency is sharply lower, which is certainly underlying support, and the wheat market is the other catalyst trading up 11¢. Wheat strength is certainly weather-related,” Ward says.

Ward adds, “Southern Plains expected to warm up, eliminate some snow cover (if there is any), and then nose-dive again in temps the first full week of February. Certainly adding some risk premium to the wheat complex.”

Bob Linneman, Kluis Commodities grain analyst, says the soybean rally could be facing headwinds.

“The world balance sheet has a good probability of increasing as South America gets rolling on harvest. This problem only gets worse unless the U.S. sees a consistent pattern of beating expectations in the weekly Export Sales Report,” Linneman says.

The USDA has announced that Thursday’s weekly Export Sales Report will be delayed one day, due to the recent government shutdown.

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

  • Export sales of 132,000 metric tons of soybean cake and meal for delivery to the Philippines during the 2017/2018 marketing year.
  • Export sales of 125,000 metric tons of soybeans for delivery to unknown destinations during the 2017/2018 marketing year.

The marketing year for soybeans began September 1, and soybean cake and meal began October 1.

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Tuesday’s Grain Market Review

Tuesday, the CME Group’s farm futures finished mostly lower.

After finishing 7¢ higher yesterday, the soybean market leads the way again today.

At the close, the March corn futures finished ¾¢ lower at $3.51¼; May futures ended ¾¢ lower at $3.59¾.

March soybean futures settled 2¢ higher at $9.86¼; May soybean futures settled 2¢ higher at $9.97¾.

March wheat futures closed 4¼¢ lower at $4.21½.

March soy meal futures are $1 per short ton lower at $339.60. January soy oil futures finished 0.36¢ higher at 32.52¢ per pound. 

In the outside markets, the NYMEX crude oil market is 88¢ higher, the U.S. dollar is lower, and the Dow Jones Industrials are 18 points lower.

On Tuesday, private exporters reported to the USDA export sales of 256,096 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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Monday’s Grain Market Review

On Monday, the CME Group’s farm markets have a mostly friendly start to the week.

At the close, the March corn futures settled ½¢ lower at $3.52; May futures finished ¼¢ lower at $3.60.

March soybean futures ended 7¢ higher at $9.84¼; May soybean futures closed 7¼¢ higher at $9.95¾.

March wheat futures finished 3¢ higher at $4.25¾.

March soy meal futures closed $7 per short ton higher at $338.60. January soy oil futures closed 0.12¢ lower at 32.16¢ per pound. 

In the outside markets, the NYMEX crude oil market is 29¢ higher, the U.S. dollar is lower, and the Dow Jones Industrials are 65 points higher.

Jason Roose, U.S. Commodities, says investors that are performing short-covering are moving the markets higher.

“Grains are finding solid support today with short covering in all commodities,” Roose says. “Plus, investors like the solid exports, weak U.S. dollar, slow producer selling, and a dry six- to 10-day forecast for central Brazil.”

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