Brazil’s rains drop soybean prices. Tuesday, January 18, 2022

On Tuesday, the CME Group’s wheat market helped the corn market close higher.

At the close, the March corn futures finished 3 1/4¢ higher at $5.99. May futures finished 2 3/4¢ higher at $6.00. December futures closed 1/2¢ lower at $5.57.

March soybean futures closed 8 1/2¢ lower at $13.61.

May soybean futures finished 8¢ lower at $13.71. New crop November soybean futures ended 9¢ lower at $12.84.

March wheat futures closed 27 3/4¢ higher at $7.69.

March soymeal futures ended 15.50 per short ton lower at $390.10.

March soy oil futures closed 0.62 higher at 59.08 per pound.

In the outside markets, the crude oil market is $2.11 per barrel higher at $85.93 the U.S. Dollar is higher, and the Dow Jones Industrials are 527 points lower (-1.47%) at 35,384.

On Tuesday, the CME Group’s wheat market is shooting higher, helped by geopolitical issues.

At midsession, the March corn futures are 1¢ lower at $5.95. May futures are 1½¢ lower at $5.95. December futures are 1½¢ lower at $5.56.

March soybean futures are 9½¢ lower at $13.60.

May soybean futures are 9¢ lower at $13.69. New-crop November soybean futures are 8¢ lower at $12.85.

March wheat futures are 23¾¢ higher at $7.65.

March soymeal futures are $13.20 per short ton lower at $392.40.

March soy oil futures are 0.39¢ higher at 58.85¢ per pound.

In the outside markets, the crude oil market is $1.44 per barrel higher at $85.26. The U.S. dollar is higher, and the Dow Jones Industrials are 567 points lower (-1.58%) at 35,344.

Jack Scoville, PRICE Futures Group, says that global issues are driving the grain markets.

“Looks like Russia has roiled the world wheat market. I understand it is cleaning out of Kiev, (Ukraine’s capital), in preparation for some kind of battle soon. Soybeans are down on the Argentina rains and corn caught in between,” Scoville says.

In early trading, the March corn futures are 5¾¢ lower at $5.90. May futures are 5¾¢ lower at $5.97. December futures are 2¼¢ lower at $5.56.

March soybean futures are 16¢ lower at $13.53.

May soybean futures are 16¢ lower at $13.63. New-crop November soybean futures are 12½¢ lower at $12.80.

March wheat futures are 10¾¢ lower at $7.52.

March soymeal futures are $11.30 per short ton lower at $394.60.
 March soy oil futures are 0.22¢ lower at 58.24¢ per pound.

In the outside markets, the crude oil market is $0.99 per barrel higher at $84.81. The U.S. dollar is higher, and the Dow Jones Industrials are 570 points lower (-1.59%) at 35,341.

On Tuesday, private exporters reported the following activity:

239,486 metric tons of soybeans for delivery to Mexico during the 2021/2022 marketing year
126,000 metric tons of grain sorghum for delivery to unknown destinations during the 2021/2022 marketing year
Bob Linneman, Kluis Advisors, says that investors still have Brazil’s crop weather in focus.

“Soybean and corn prices opened weaker on Monday night as dry areas in South America got some rain as forecasts were predicting. However, some would argue that the rain was not as widespread as models said it would be. The trading action in wheat looks like short-covering is underway. All three classes of wheat slid substantially from their November highs,” Linneman stated in a note to customers.

Linneman added, “Corn futures did a good job holding their ground last Friday, since many traders thought the strong energy market aided the corn bulls. This morning, crude is $1.45 higher and corn is a nickel lower in the front months. The funds may be looking for friendly news to use as an exit plan for some long positions.”

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Tags: markets, wheat futures, soymeal futures, soy oil futures, soybean futures, corn futures