On Wednesday, the CME Group’s wheat market pulled up corn prices.
At the close, the March corn futures closed 3¢ higher at $4.23. May corn futures settled 2½¢ higher at $4.26.
January soybean futures closed 9¢ lower at $11.53. March soybean futures closed 8¼¢ lower at $11.54¾.
March wheat futures closed 11¼¢ higher at $5.88½.
Jan. soymeal futures closed $4.60 per short ton lower at $385.60.
Jan. soy oil futures closed 0.09¢ lower at 36.92¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.66 per barrel higher (+1.48%) at $45.21. The U.S. dollar is lower, and the Dow Jones Industrials are 64 points higher (+.18%) at 29,878 points.
Jack Scoville, PRICE Futures Group, says that, all in all, the markets are holding very well, considering.
“It is still a weather market and the weather is improved in Brazil and Argentina. We are three days into a down move, so much of the spec profit taking should be wrapping up and a more sideways market is possible for a time. A lack of Chinese demand is also hurting the market, due to no daily sales announcements,” Scoville says.
Al Kluis, Kluis Advisors, says that investors’ attention now turns to the upcoming USDA Crop Production reports next week.
“On Tuesday, commodity fund selling and liquidation of speculative longs pressured grain prices," Kluis told customers in a daily note. “The USDA will make a slight reduction in the size of the corn and soybean crops in Brazil and Argentina in the December Crop Production reports. The USDA does not usually make changes as fast as private crop forecasters, and they often do not make significant changes until later in the growing season. They have plenty of future reports to move the crop size lower.”
He added, “I am watching private trade estimates for the crop size in South America. One of my most respected sources has reduced the corn crop in Brazil by 2.0 million metric tons (mmt) this week. Soybean production in Brazil was taken 2 mmt lower.”
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Tuesday’s Grain Market Review
On Tuesday, the CME Group’s farm markets start lower, turn higher, close lower.
At the close, the March corn futures closed 5¼¢ lower at $4.20¼. May corn futures closed 5¢ lower at $4.24½.
January soybean futures closed 6½¢ lower at $11.62½. March soybean futures finished 6½¢ lower at $11.63½.
March wheat futures ended 7¾¢ lower at $5.77¼.
Jan. soymeal futures closed $0.30 per short ton lower at $390.20.
Jan. soy oil futures closed 0.48¢ lower at 37.01¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.79 per barrel lower (-1.74%) at $44.55. The U.S. dollar is lower, and the Dow Jones Industrials are 303 points higher (+1.02%) 29,942 points.
Al Kluis, Kluis Advisors, says that this is the time of the year when the markets react to South America’s crop growing weather.
“The combination of beneficial rain in South America and end-of-the-month selling resulted in large losses,” Kluis told customers in a daily note. “The dry weather in South America is doing more damage to the corn crop than the soybean crop so far. With delayed planting in Argentina and the current corn/soybean ratio, some Argentine farmers may shift some soybean acres over to corn.”
He added, “Will the hard drop in the U.S. dollar and the current sell-off in the grain markets bring global grain buyers back into the U.S. market in early December? Note that the soybean market has put in the significant lows early each recent month: September 2, October 2, and November 2.”
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Monday’s Grain Market Review
On Monday, the CME Group’s farm markets drop.
At the close, the March corn futures closed 7¾¢ lower at $4.26¼. May corn futures settled 7¾¢ lower at $4.29.
January soybean futures closed 23¼¢ lower at $11.68½. March soybean futures ended 23¼¢ lower at $11.69½.
March wheat futures closed 21¢ lower at $5.85¼.
Jan. soymeal futures finished $5.80 per short ton lower at $390.50.
Jan. soy oil futures closed 0.94¢ lower at 37.34¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.15 per barrel lower (-0.33%) at $45.38. The U.S. dollar is higher, and the Dow Jones Industrials are 369 points lower (-1.23%) at 29,541 points.
On Monday, private exporters reported to the USDA the following activity:
- Export sales of 140,000 metric tons of corn for delivery to unknown destinations during the 2020/2021 marketing year.
- Export sales of 204,000 metric tons of corn received in the reporting period for delivery to unknown destinations during the 2020/2021 marketing year.
The marketing year for corn began Sept. 1.
Al Kluis, Kluis Advisors, says that all eyes are on South America’s crop growing weather.
“The corn crop size (and possibly the soybean crop size) estimates for both Brazil and Argentina will move lower when the private estimates are released later today. The weather late last week and over the weekend shows that the weather models are overstating the amount of rain that will be received,” Kluis told customers in a daily note.
He added, “Who will make – and who will take – delivery on the December corn, soybean meal, and wheat contracts? No deliveries have been posted today, on the first delivery day on the CBOT. This will show how the commercials want to position in the cash markets.”
The Link LonkDecember 02, 2020 at 09:54PM
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Wheat closed up 11¢ Wednesday - Successful Farming
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