You are here

Corn, Soybean Markets Closed Mixed Friday

The U.S. dollar is stronger, pressuring commodities.

DES MOINES, Iowa --  On Friday, the CME Group farm markets finished mixed.

The March corn futures finished 1¼¢ higher at $3.52¾. May futures ended 1¢ higher at $3.61. January soybean futures closed 2¼¢ lower at $9.89¾. 

March soybean futures settled 2¼¢ lower at $9.89¾.

March wheat futures closed 2½¢ lower at $4.19.

January soy meal futures closed $3.50 per short ton lower at $331.70. January soy oil futures closed 0.29¢ higher at 33.62¢ per pound. 

In the outside markets, the NYMEX crude oil market is $0.74 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 78 points higher.

Not that it’s helping, but the USDA announced fresh soybean sales Friday.

Private exporters reported to the U.S. Department of Agriculture the following activity:

  • Export sales of 268,000 metric tons of soybeans for delivery to China during the 2017/2018 marketing year.
  • Export sales of 129,000 metric tons of soybeans for delivery to unknown destinations. Of the total 63,000 metric tons is for delivery during the 2017/2018 marketing year and 66,000 metric tons is for delivery during the 2018/2019 marketing year.

The marketing year for soybeans began September 1.

-----------

Thursday’s Grain Market Review

On Thursday, the market shrugged off strong weekly export sales, as soybeans finished lower.

At the close, the March corn futures closed 1¼¢ lower at $3.51½. May futures finished 1¼¢ lower at $3.60.

January soybean futures settled 10¾¢ lower at $9.92.  March soybean futures ended 10½¢ lower at $10.04¼.

March wheat futures closed 3¾¢ lower at $4.21½.

January soy meal futures ended $7.10 per short ton lower at $335.20. January soy oil futures closed 0.16¢ higher at 33.33¢ per pound. 

In the outside markets, the NYMEX crude oil market is $0.70 higher, the U.S. dollar is higher, and the Dow Jones Industrials are 34 points higher.

The USDA’s Weekly Export Sales Thursday shows that soybean sales beat trade expectations, while corn came in at the high end and wheat within.

  • Wheat = 323,000 metric tons vs. the trade’s expectations of between 200,000 and 400,000 metric tons
  • Corn = 876,400 mt. vs. the trade’s expectations of between 800,000 and 1,300,000 mt.
  • Soybeans = 2.08 million mt. vs. the trade’s expectations of between 900,000 and 1,700,000 mt.
  • Soybean meal = 186,400 mt. vs. the trade’s expectations of between 150,000 and 300,000 mt.

Cory Bratland, Kluis Commodities broker, stated in a daily note to customers that the ag commodities face a weather market.

“However, the area of concern these days is Argentina. Weather maps have been back and forth with our rain chances. Argentina remains rather dry, and the latest forecasts do not call for any rain,” Bratland says.

Bratland added, “The overall crop in South America is starting to get smaller as we watch. We still have plenty of soybeans around the world, but we also have huge global demand.”

----------

Wednesday’s Grain Market Review

On Wednesday, the CME Group’s soybean market trimmed losses while corn and wheat finished lower, too.

Following the USDA’s announcement Wednesday that it was correcting the amount of soybeans purchased by China in a previous sale, the market reacted negatively.

At the close, the March corn futures finished 1¢ lower at $3.52; May futures settled 1¼¢ lower at $3.61.

January soybean futures finished 5¾¢ lower at $10.02¾; March soybean futures are 5¾¢ lower at $10.14¾.

March wheat futures ended 7½¢ lower at $4.25¼.

January soy meal futures closed $1 per short ton lower at $342.30. January soy oil futures closed 0.33¢ lower at 33.17¢ per pound. 

In the outside markets, the NYMEX crude oil market is $2.17 lower, the U.S. dollar is higher, and the Dow Jones Industrials are 11 points lower.

Bob Linneman, Kluis Commodities broker, says traders are closely watching South American weather.

“Traders are looking for signs of crop stress from the upcoming hot spell in Argentina,” Linneman stated in a daily note to customers.

He added, “Will funds be willing to aggressively add longs in soybean market at this time of year? I think the answer is yes, especially if world supply could be negatively impacted.”

On Wednesday, the USDA corrected a previous export sale announcement, regarding soybeans sold to China.

FAS Program Announcement FAS-ESR-097-17, issued at 9 a.m. on November 30, which announced export sales of 525,000 metric tons of soybeans for delivery to China in the 2017/2018 marketing year was issued in error. The correct announcement is as follows:
 
• Export sales of 393,000 metric tons of soybeans for delivery to China during the 2017/2018 marketing year.
 
The marketing year for soybeans began September 1.

Jason Ward, Northstar Commodity Investment Company’s grain analyst, says profit-taking is pressuring the market, too.

“The market didn’t like the export sale correction. Plus, the soybean market has rallied 32¢ per bushel from last week’s lows. So, to take a dime out of it very quickly is just how it goes,” Ward says.

------------

Tuesday’s Grain Market Review

On Tuesday, the CME Group’s soybean market comes off its daily high and remains stronger.

At midsession, the March corn futures are steady at $3.53; May futures are ¼¢ lower at $3.61.

January soybean futures are 10½¢ higher at $10.09; March soybean futures are 10¾¢ higher at $10.21.

March wheat futures are 2¾¢ lower at $4.32.

January soy meal futures are $5.20 per short ton higher at $342.70. January soy oil futures are 0.03¢ lower at 33.41¢ per pound. 

In the outside markets, the NYMEX crude oil market is 82¢ lower, the U.S. dollar is higher, and the Dow Jones Industrials are 51 points lower.

Jason Roose, U.S. Commodities grain analyst, says the soybean rally is driven by South America’s crop weather.

“Soybeans continue to rally, widening the spread between corn and wheat, on dry weather concerns in Argentina and a drier weather outlook for central Brazil. Plus, positive meal demand is giving the the soybean complex price premium,” Roose says.

 

----------

Monday’s Grain Market Review

On Monday, the CME Group’s farm futures prices diverge, as the soybean complex finds favor with investors.

At the close, the March corn futures finished 5¼¢ lower at $3.53½; May futures closed 4½¢ lower at $3.62.

January soybean futures ended 4¼¢ higher at $9.98½; March soybean futures settled 4¼¢ higher at $10.10¼.

March wheat futures closed 3¼¢ lower at $4.35¼.

January soy meal futures ended $7.30 per short ton higher at $337.50. January soy oil futures settled 0.25¢ lower at 33.44¢ per pound. 

In the outside markets, the NYMEX crude oil market is 82¢ lower, the U.S. dollar is higher, and the Dow Jones Industrials are 133 points higher.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says soybeans are alone at the top.

“Soybeans are strong, as the weekend weather proved drier in Argentina than forecast. It might become a real weather market now,” Scoville says. 

“I think we found some producer and spec selling on the way to the highs, but that would probably shut off below $10 basis the January contract.”

Scoville adds, “I am surprised that corn is so weak; the dry weather in the south applies to corn, too. Really, I have no idea why it is so bad. Wheat is hanging in there and getting support from the crop size cut from Australia and the cold and dry weather in the Plains this week.”

Read more about

Talk in Marketing

Most Recent Poll

Will you plant more corn or soybeans next year?