Wheat falls 17¢. Wednesday, November 24, 2021

On Wednesday, the CME Group’s farm markets close lower.

At the close, the Dec. corn futures finished ¾¢ lower at $5.79. March futures settled 2½¢ lower at $5.85. May corn futures ended 2¼¢ lower at $5.90.

January soybean futures settled 6¢ lower at $12.66.

March soybean futures closed 7¼¢ lower at $12.77. May soybean futures settled 7¾¢ lower at $12.86.

March wheat futures closed 17¼¢ lower at $8.50.

Jan. soymeal futures finished $5.20 per short ton lower at $350.90.

Jan. soy oil futures closed 0.62¢ higher at 60.70¢ per pound.

In the outside markets, the crude oil market is $0.25 per barrel lower at $78.25, the U.S. dollar is higher, and the Dow Jones Industrials are 86 points lower (-0.24%) at 35,727.

PJ Quaid, R.J. O’Brien broker, says that investors are eyeing the December corn futures contract going off of the board.

“Dec options expire on Friday and first notice day for Dec is next Tuesday. There are close to 25,000 of the Dec $6.00 call option contracts that are open. So, if Dec. corn futures close near the higher end of today’s range, it will ruin Thanksgiving for some,” Quaid says. “For soybeans, pressure is coming from the fact that the South American crop weather is good,” Quaid says.

On Wednesday, private exporters reported sales of:

– 330,000 metric tons of soybeans for delivery to unknown destinations during the 2021/2022 marketing year
– 100,000 metric tons of corn for delivery to Mexico during the 2021/2022 marketing year
– 30,000 metric tons of soybean oil for delivery to India during the 2021/2022 marketing year

Bob Linnneman, Kluis Advisors, says that wheat continues to be the leader in the grain markets.

“CBOT wheat hit the highest level since 2012. Spring wheat prices for next September (the new-crop 2022 contract) hit new contract highs on Tuesday. The holiday-shortened week has benefited the bull camp this year. Does that mean the bears will get Christmas? Traders are keeping a close eye on the U.S. dollar as the rally continues,” Linneman stated in a note to customers. “The dollar hit the 50% retracement level of the March 2020 high and the January 2021 low. With all the recent news of ‘inflation trade’ flooding the headlines, will the dollar continue to grind higher?”

Linneman added, “Weather in Brazil is starting to catch the attention of soybean traders. The northern sections of Brazil have had more favorable forecasts and resulting moisture than the southern areas. If this is a new pattern that is setting up, then we could see traders add risk premium to the market.”

The stock and commodity markets are closed on Wednesday night, all day Thursday November 24, and will reopen on Friday November 26 at 8:30 am. On Friday, the grain markets close at 12:05 p.m.


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