Grains finish on a high note. Friday, December 17, 2021
On Friday morning, Grains traded quietly to start the session before pushing higher to finish the day.
At the close, March corn futures added 2¢ to finish at $5.93 1/4 May corn closed 1 1/2¢ higher at $5.94 1/4 and July corn futures added just a penny at $5.952 3/4 after trading stronger earlier in the session.
Bob Linneman, Kluis Commodity Advisors, shared in his morning commentary to customers that they are watching that $5.96 area which appears to be the current resistance area the market is having a hard time trading through. However, he says if the market breaks above the $6.00 mark set back in August, the bulls will likely continue to push the market higher.
Fresh export sales of 132,000 metric tons of soybeans for delivery to China were reported this morning, giving soybeans a reason to push higher during the mid-session up as much as 17¢ at one point before pulling back at the close.
January soybean futures ended Friday’s session up 8¢ higher at $12.85 1/4 March soybean futures closed 10 1/4¢ higher to end the day at $12.88 1/2 and May soybean futures finished 9 1/2¢ stronger on the day to close at $12.93 1/2.
Linneman also shared in his morning newsletter that weather in Southern Brazil is starting to gain more attention by the markets and if concerns are still prominent at the end of the month, traders will be more likely to add risk premium to prices.
While Joseph Christianson of Cargill added this continued focus on South America has continued to support not only soybean prices, sharing “soybeans are higher on continued concerns of dry weather in South America. This has helped provide small gains in corn and wheat as well.”
March wheat futures finished 4 1/4¢ higher to end the week at $7.75.
Jan. soymeal futures added 7.20 per short ton higher closing at $379.50.
Jan. soy oil futures finished lower Friday closing out the week at 53.88 per pound.
Additionally, 33,000 metric tons of soybean oil for delivery to China during the 2021/2022 marketing year were reported first thing Friday morning.
In the outside markets, crude oil finished the day lower giving up $1.60 per barrel at $70.78, the U.S. Dollar finished higher, and the Dow Jones Industrials closed down 343 points (-0.96%) at 35,554.42.
Jason Roose, U.S. Commodities, shared grains continue to remain strong heading into the final stretch of the year.
“In the last full trading week of the year, grains continue to be firm with strong cash prices, slow producer selling with strong ethanol and crush margins, slightly drier weather in southern Brazil, and a continuation of spot bean purchases from China has given the grains solid support on breaks, weak energy markets, and a potential strong dollar will limit rallies.”
PJ Quaid, RJ O’Brien broker, says there were a lot of factors impacting today’s strength.
“The calendar spreads were firm across the board, wheat was stronger off of China buying French and Australian wheat, and corn broke through key upside resistance.” He adds “However, I would have liked to see a better close” in reference to corn’s inability to finish near the highs of the day.
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