Mostly higher is the Wednesday’s grain market direction

Soybean prices add nearly a dime.

On Wednesday, the CME Group’s farm markets move mostly higher.

In early trading, the March corn futures are 4¢ higher at $4.28¾. May corn futures are 3½¢ higher at $4.31¼.

January soybean futures are 9¼¢ higher at $11.93½. March soybean futures are 9¼¢ higher at $11.97¾.

March wheat futures are 1¾¢ lower at $5.98¾.

Jan. soymeal futures are $6.20 per short ton higher at $394.40.

Jan. soy oil futures are 0.07¢ lower at 39.12¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.12 per barrel lower (-0.25%) at $47.50. The U.S. dollar is lower, and the Dow Jones Industrials are 28 points lower (-0.09%) at 30,170 points.

Al Kluis, Kluis Advisors, says that the grain markets are stuck in a trading range.

“The corn and soybean futures market are in a trading channel. It will take a major surprise or change in the South American weather to break out of the current range market. Soybean processors are making excellent margins while ethanol producers are losing money with $4.00 corn and $1.20 per gallon cash ethanol,” Kluis stated in a daily note to customers.

He added, “I am watching private trade estimates for the crop size in South America. One of my main sources (Michael Cordonnier) has reduced the corn crop in Brazil by 2 million metric tons (mmt) again this week. He reduced the size of the Argentine corn crop by another 1 mmt, and dropped the Argentine soybean crop by 1 mmt. The total corn crop in South America is now down 10 mmt (380 million bushels) from the last USDA report.”

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