On Thursday, the CME Group’s farm markets, closing mixed, found strength in the new-crop corn contract.
At the close, the July corn futures settled 6 1/4¢ higher at $6.64 3/4. New crop September futures closed 12¢ higher at $5.79. December corn futures ended 13¢ higher at $5.52.
July soybean futures closed 5¢ lower at $15.33 1/4. August soybean futures closed 5 1/4¢ lower at $14.80 1/2. New crop November soybean futures are 1 1/2¢ lower at $13.67 1/2.
July wheat futures closed 4¢ lower at $6.75 1/4.
July soymeal futures settled $2.10 per short ton lower at $401.10.
July soy oil futures finished $0.71 lower at 65.76¢ per pound.
In the outside markets, the NYMEX crude oil market is -1.20 lower (-1.89%) at $62.16. The U.S. dollar is lower, and the Dow Jones Industrials are 223 points higher (+0.66%) at 34,119 points.
On Thursday, private exporters reported to the USDA the follow activity:
Private exporters reported to the USDA export sales of 1,224,000 metric tons of corn for delivery to China during the 2021/2022 marketing year.
The marketing year for corn began September 1.
In the last five business days, China has purchased 275.48 million bushels of U.S. corn. That is more than 17 states’ annual production.
Jack Scoville, PRICE Futures Group, says that good export sales are ending the correction.
“Dec. corn has now posted a new weekly high and the correction looks over in this market. Its got a low built and looks good. Soybeans have tested into support and have a double bottom showing on the daily charts so maybe the selling is over there too. Rain is around but appears to be part of the price,” Scoville says.
Separately, the USDA’s Weekly Export Sales Report Thursday shows strong demand figures for corn.
Corn = 4.33 million metric tons (mmt.) vs. the trade expectations of 3.0 to 4.8 mmt. Of that total, China was the major buyer.
Soybeans = 180,200 mt. vs. the trade’s expectation of 100,000 to 600,000 mt.
Wheat = 438,700 mt. vs. the trade’s expectations of 75,000 to 350,000 mt.
Soybean meal = 268,000 mt. vs. the trade’s expectations of 50,000 to 300,000 mt.
Bob Linneman, Kluis Advisors, says that investors are watching China’s corn purchases.
“Soybean prices were led lower by the July contract Wednesday, as technical selling accelerated once support was broken. Corn traders were given another large export sale announcement on Wednesday morning. However, prices still closed lower on the day. Given the trend over the last two weeks, traders are half expecting another sale this morning,” Linneman stated in a note to customers.
He adds, “Why has China taken such an aggressive approach to their corn import needs so early in the marketing year? Many traders believe the drought in Brazil’s second-crop corn region has them concerned about sourcing bushels early. As friendly as this news seems, futures have posted lower lows and lower highs seven of the past eight trading sessions.”
The Link LonkMay 20, 2021 at 08:53PM
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Corn market unable to ignore China's unprecedented purchases | Thursday, May 20, 2021 - Successful Farming
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