Corn, soybeans end higher. Thursday, December 9, 2021

Following the USDA’s December Supply/Demand & WASDE Reports, the CME Group’s farm markets finished mostly higher.

At the close, the March corn futures closed 4 1/2¢ higher at $5.91. May futures ended 4 1/4¢ higher at $5.93. July corn futures closed 3¢ higher at $5.91.

January soybean futures finished 3 1/2¢ higher at $12.64.

March soybean futures settled 3 1/4¢ higher at $12.72 1/2. May soybean futures ended 2 3/4¢ higher at $12.78.

March wheat futures settled 17 3/4¢ lower at $7.76.

Jan. soymeal futures closed 2.50 per short ton higher at $359.70.

Jan. soy oil futures settled 0.70 of a cent lower at 54.85 per pound.

In the outside markets, the crude oil market is $1.74 per barrel lower at $70.62 the U.S. Dollar is higher, and the Dow Jones Industrials are 30 points higher (+0.09%) at 35,785.

Jason Roose, U.S. Commodities, says that today’s USDA Crop Report was price-neutral on all U.S. corn and soybean production numbers from November’s report.

“Ethanol usage was left unchanged which was considered a surprise. Brazil and Argentina’s crops also were left unchanged, with world corn production increasing and world soybean production down 2 mmt,” Roose says.

He added, “In a market dominated by inflation fear, strong energy markets have kept a bullish premium in all markets and is keeping strong end user buying on breaks. The weather and energies will continue to keep the grains volatile with large South American crop potential giving the grains resistance,” Roose says.

On Thursday, the USDA’s December Supply/Demand and WASDE reports have pressured midsession prices.

At midsession, the March corn futures are unchanged at $5.87. May futures are unchanged at $5.89. July corn futures are 1¢ lower at $5.87.

January soybean futures are 9 1/2¢ lower at $12.51.

March soybean futures are 9 1/4¢ lower at $12.59 1/2. May soybean futures are 9 1/4¢ lower at $12.66.

March wheat futures are 21¢ lower at $7.72.

Jan. soymeal futures are 3.60 per short ton higher at $353.60.

Jan. soy oil futures are 1.23 of a cent lower at 54.32 per pound.

In the outside markets, the crude oil market is $1.18 per barrel lower at $71.18 the U.S. Dollar is higher, and the Dow Jones Industrials are 18 points lower (-0.05%) at 35,736.

SOYBEAN, WHEAT MARKETS FALL
On Thursday, the CME Group’s farm markets trade mostly lower, ahead of today’s 11:00 a.m. CT USDA report.

In early trading, the March corn futures are ¼¢ higher at $5.87. May futures are unchanged at $5.89. July corn futures are ½¢ lower at $5.88.

January soybean futures are 6½¢ lower at $12.54.

March soybean futures are 6¼¢ lower at $12.62½. May soybean futures are 6¼¢ lower at $12.69.

March wheat futures are 12¢ lower at $7.82.

Jan. soymeal futures are $0.80 per short ton higher at $358.00. Jan. soy oil futures are 1.31¢ lower at 54.24¢ per pound.

In the outside markets, the crude oil market is $0.66 per barrel lower at $71.70, the U.S. dollar is higher, and the Dow Jones Industrials are 114 points lower (-0.32%) at 35,640.

On Thursday, private exporters reported sales of 280,000 metric tons of soybeans for delivery to unknown destinations. Of the total, 140,000 metric tons is for delivery during the 2021/2022 marketing year and 140,000 metric tons is for delivery during the 2022/2023 marketing year.

Separately, the delayed USDA’s Weekly Export Sales Report Friday shows strong demand figures for corn and soybeans.

Corn = 1.13 million metric tons (mmt.) vs. the trade’s expectations of 600,000 to 1.40mmt.

Soybeans = 1.63mmt. vs. the trade’s expectation of 1.0mmt to 1.8mmt.

Wheat = 239,900 mt. vs. the trade’s expectation of 50,000 to 400,000 mt.

Soybean meal = 205,300 mt. vs. the trade’s expectation of 100,000 to 250,000 mt.

Bob Linneman, Kluis Advisors, says that yesterday’s trade results may be telling.

“Soybean prices were more than 20¢ off the low. Corn was slightly higher, which was surprising given the huge export sale announced to Mexico. It was the sixth-largest sale on the corn export list. Wheat prices slid Wednesday. U.S. wheat is being passed by on the export stage since we are overpriced,” Linneman stated in a note to customers.

Linneman added, “The December USDA report is historically a quiet report. We do not expect major changes. However, traders are going to be closely watching the updates to the world numbers to see if the trend is for increasing global supplies.”

Successful Farming

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