Soybeans continue to trade South American weather. Tuesday, December 21, 2021

After yesterday’s impressive close for soybeans, and more notably wheat, the two grains have continued their upward momentum dragging corn along with them.

At the close, corn futures across the board pushed further into the green as the March corn contract closed 7¼¢ higher at $5.98¼, May corn closed 7¼¢ higher to end at $5.99¼, and July corn futures finished 8¢ higher on the day at $5.97¾.

January soybeans posted large gains today adding 15¾¢ in the January contract to close at $13.08, March soybean futures added 18¢ gains closing the session at $13.12¾, and May soybean futures finished 19¼¢ higher at $13.19.

March wheat futures were eager to push higher through the midsession and finished 21¼¢ higher to finish the session at $7.99.

January soymeal futures clawed their way to a $7.80 per short ton gain, closing at $394, after early losses at the open.

January soy oil futures watched a turnaround Tuesday play out after ending lower yesterday, closing at 53.90¢ per pound.

As we near the end of the holiday week, the commodity markets will be closed on Friday in observance of Christmas and the markets should see less volume the closer we get to Christmas.

In the outside markets, the trade appears to have shaken off fears of the omicron variant closing major global economies again as the overnight session got a nice bounce to push markets higher at the open. Crude oil closed $2.58 per barrel higher at $71.19, the U.S. dollar finished higher, and the Dow Jones Industrials added 511 points (+1.46%) higher at 35,443.89 — recovering from yesterday’s weakness.

Al Kluis, Kluis Commodity Advisors, mentioned in his morning newsletter to customers that yesterday’s closes higher in both soybeans and wheat were impressive moves considering the outside markets were trading extremely volatile.

“Grain traders were able to maintain focus on the weather concerns in South America instead of the volatility in other markets,” says Kluis. He also added that analysts will continue watching production in South America and many may start adjusting their production estimates soon due to the intensifying heat in the short-term forecasts.

Naomi Blohm, Total Farm Marketing, says soybean prices have been able to trade above $13 in Jan/March/May/July/August contracts, which psychologically is a huge deal for the markets.

“There are a lot of bullish factors adding up for soybeans: continued dry weather in South America, the funds have been stepping in and buying, and now we’ve seen technical buying once we saw contracts push above $13 today. The $13 target was a big area of resistance both psychologically and technically, which was a barrier the markets were finally able to trade through,” says Blohm.

She also added that the impressive moves in the January and March contracts have now pushed both of them to climb above their 200-day moving averages (Jan. $13.05/March $12.95½).

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