Wheat closes 75¢ lower, corn falls 35¢, soybeans plunge 69¢. Friday, February 25, 2022

The CME Group’s farm markets sold off sharply, with the Russia/Ukraine war looming over the trade.

At the close, the March corn futures finished 35¼¢ lower at $6.59. May futures ended 34¢ lower at $6.55. December futures ended 25¾¢ lower at $5.79.

May soybean futures closed 69¢ lower at $15.84.

July soybean futures settled 63¾¢ lower at $15.73. New-crop November soybean futures closed 36½¢ lower at $14.15.

May wheat futures settled 75¢ lower at $8.59.

May soymeal futures ended $12.90 per short ton lower at $442.70.

May soy oil futures closed 3.04¢ lower at 68.93¢ per pound.

In the outside markets, the crude oil market is $0.65 per barrel lower at $92.16, the U.S. dollar is lower, and the Dow Jones Industrials are 794 points higher (+2.39%) at 34,018.

On Friday, the CME Group’s farm markets get barnstormed by sellers.

At midsession, the March corn futures are 33¼¢ lower at $6.61. May futures are 34¢ lower at $6.56. December futures are 25¾¢ lower at $5.79.

May soybean futures are 63¢ lower at $15.90.

July soybean futures are 57¾¢ lower at $15.79. New-crop November soybean futures are 39½¢ lower at $14.12.

May wheat futures are 75¢ lower at $8.59.

May soymeal futures are $10.60 per short ton lower at $445.00.

May soy oil futures are 3.36¢ lower at 68.61¢ per pound.

In the outside markets, the crude oil market is $1.87 per barrel lower at $90.94, the U.S. dollar is lower, and the Dow Jones Industrials are 708 points higher (+2.13%) at 33,932.

As investors digest the war in Ukraine, the CME Group’s farm markets tank.

In early trading, the March corn futures are 22¼¢ lower at $6.72. May futures are 23¼¢ lower at $6.67. December futures are 17¾¢ lower at $5.87.

May soybean futures are 31½¢ lower at $16.22.

July soybean futures are 26¢ lower at $16.10. New-crop November soybean futures are 15¢ lower at $14.36.

May wheat futures are 48¢ lower at $8.86.

May soymeal futures are $3.40 per short ton lower at $452.20.

May soy oil futures are 0.79¢ lower at 71.18¢ per pound.

In the outside markets, the crude oil market is $0.57 per barrel lower at $92.24, the U.S. dollar is lower, and the Dow Jones Industrials are 104 points higher (+0.31%) at 33,260.

On Friday, private exporters reported the following activity:

334,000 metric tons of soybeans received in the reporting period for delivery to China during the 2022/2023 marketing year.
285,000 metric tons of soybeans for delivery to unknown destinations. Of the total, 159,000 metric tons is for delivery during the 2021/2022 marketing year and 126,000 metric tons is for delivery during the 2022/2023 marketing year.

Bob Linneman, Kluis Advisors, says investors are glued to the war developments.

“Trading on Thursday was nothing short of wild! The Russian invasion of Ukraine – plus headlines suggesting fighter planes flying over Taiwan – sent the market wildly higher. There are no easy or sure answers to all of the questions that are being asked. The world supply of corn and soybeans was drifting lower before this unfortunate situation. Traders have to determine how much premium needs to be added for the serious issues that have emerged. Consider using short-dated put options to protect these prices while leaving the upside open,” Kluis stated in a note to customers.

Linneman added, “Ukraine is the world’s fourth-largest corn and wheat exporter. If there are disruptions to their crop production cycle this summer, then the world may not be able to make up the shortfall. This issue needs to be handled swiftly or the grain futures market will have to decide how the world balance sheet will look with all of the uncertainty.”

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