On Tuesday, the CME Group’s farm markets jump up.
At the close, the Sept. corn futures finished 9¢ higher at $3.40¾. Dec. corn futures closed 9½¢ higher at $3.54¾.
Nov. soybean futures finished 14½¢ higher at $9.20½. January soybean futures closed 14¼¢ higher at $9.27¼.
Dec. wheat futures settled 7¾¢ higher at $5.35¾.
Dec. soymeal futures closed $3.00 per short ton higher at $300.00. Dec. soy oil futures ended 0.33¢ higher at 32.28¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.69 per barrel higher at $43.35. The U.S. dollar is lower, and the Dow Jones Industrials are 79 points lower.
Private exporters reported to the U.S. Department of Agriculture the following activity:
- Export sales of 408,000 metric tons of corn for delivery to China during the 2020/2021 marketing year.
- Export sales of 100,000 metric tons of corn for delivery to Japan during the 2020/2021 marketing year.
- Export sales of 204,000 metric tons of soybeans for delivery to China during the 2020/2021 marketing year.
- Export sales of 142,500 metric tons of soybeans for delivery to unknown destinations during the 2020/2021 marketing year.
The marketing year for corn and soybeans began Sept. 1.
Al Kluis, Kluis Advisors, says that the worsening crop conditions are giving support to the markets.
“The USDA Crop Progress report showed corn ratings down 5% and soybean rating down 3%. This was more than expected and has corn and soybeans higher in the night trade. Yesterday, the U.S. stock market rallied to new all-time highs and in the overnight market stock prices are higher again,” Kluis told customers in a daily note.
He added, “Watch the crop ratings in Iowa very closely. Last week, corn and soybeans fell by 10% and in the Monday report, conditions declined another 3% for corn and 6% for soybeans. The drop in Iowa’s yield potential in the last three weeks will likely show up in the USDA Crop Production report next week.”
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Monday’s Grain Market Review
On Monday, the CME Group’s farm markets begin the week mostly higher.
At the close, the Sept. corn futures ended 4¾¢ higher at $3.31¾. Dec. corn futures closed 4½¢ higher at $3.45.
Nov. soybean futures settled 1¢ higher at $9.05½. January soybean futures finished 1¾¢ higher at $9.13.
Dec. wheat futures finished 7¢ lower at $5.27½.
Dec. soymeal futures ended $0.50 lower per short ton at $297.00. Dec. soy oil futures closed 0.28¢ higher at 31.95¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.25 per barrel higher at $42.59. The U.S. dollar is lower, and the Dow Jones Industrials are 261 points higher.
Jack Scoville, PRICE Futures Group, says that it is a weather market for the most part today.
“Corn and bean prices are reacting to hot and dry forecasts for this week. Demand has been good as well, but no demand news today is hurting the upside. Neither corn nor beans have been able to push to new highs yet, and that could become significant. Traders seem to be bulled up on the weather, but we are getting closer to harvest. So, another downswing might be coming soon,” Scoville says.
Al Kluis, Kluis Advisors, says that investors are watching for this afternoon’s crop ratings and Iowa’s crop weather.
“The grain market was quiet on Friday with traders focusing on whether the two tropical depressions will result in more rain in the Corn Belt this week,” Kluis told customers in a daily note. “The USDA Crop Progress report today will show corn conditions 2% to 3% lower and soybeans 1% to 2% lower than last week. Iowa will again take a big hit in the reports out this afternoon.”
He added, “Watch the extended weather forecasts and the track of the two tropical depressions. Will these storms bring rain into the dry areas of the western Corn Belt? If the dry conditions continue in Iowa for another two weeks, then the national yield of both corn and soybeans will move lower in future reports. Meanwhile, the USDA enumerators are out checking crop size across the Corn Belt over the next two weeks for the September 11, 2020 Crop Production report.”
The Link LonkAugust 25, 2020 at 08:55PM
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Demand, weaker ratings push up corn, soybean prices Tuesday - Successful Farming
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