Soybean prices move beyond $12 per bushel Friday

Soybean prices move beyond $12 per bushel Friday.

On Friday, the CME Group’s soybean market topped the $12.00 mark and closed double-digits higher.

At the close, the March corn futures finished 5¢ higher at $4.37 1/2. May corn futures settled 4 1/4¢ higher at $4.39.

January soybean futures closed 18 1/4¢ higher at $12.20 1/2. March soybean futures finished 18 1/2¢ higher at $12.24.

March wheat futures settled 1/2¢ lower at $6.08 1/2.

Jan. soymeal futures closed $7.60 per short ton higher at $405.50.

Jan. soy oil futures finished 0.14 of a cent higher at 40.07¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.58 per barrel higher (+1.18%) at $48.93. The U.S. dollar is higher, and the Dow Jones Industrials are 203 points lower (-0.51%) 30,070 points.

Bob Linneman, Kluis Advisors, says that the farm markets have been fed some bullish news to end the week.

“Grain bulls got a bit of headline momentum to go their way on Thursday, as the weekly export sales data was better than expected for corn and soybeans. This is somewhat surprising, since the daily reports have been quiet. Another catalyst for the grain bulls was the slide in the U.S. dollar under the 90 mark – the lowest level since April 2018. Traders expect the Federal Reserve to continue on its current path of declining the dollar until economic indicators return to comfortable levels,” Linneman stated in a daily note to customers.

Linneman added, “Now that the soybean bulls have been able to break through the $12 resistance level, we should expect to see this level now become support. A pullback in the next couple of days should meet strong support within a penny or two of this mark. If the funds are going to begin adding to their long position in soybeans with the pop over resistance, then will they consider getting long soybeans while getting short corn or wheat at the same time? It is worth noting that seasonal patterns suggest buying soybeans and selling wheat in December.”

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