Thursday, 1 June 2017

CORN, SOYABEAN PRICES CLOSE LOWER THURSDAY, WHEAT IS LOWER.

DES MOINES, Iowa -- On Thursday, the CME Group’s farm markets finished off a few cents after the soybean market started the session stronger.

At the close, the July corn futures settled 1½¢ lower at $3.70½; December futures ended 1¾¢ lower at $3.89¼.

July soybean futures ended 3¾¢ lower at $9.12¼, and November soybean futures closed ½¢ lower at $9.17¾.
July wheat futures ended ¼¢ lower at $4.29.

July soy meal futures finished $0.60 per short ton lower at $297.50. July soy oil futures finished 0.09¢ lower at 31.25¢ per pound.

In the outside markets, the Brent crude oil market is $0.11 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 105 points higher.

Due to the Memorial Day Holiday, the USDA Weekly Export Sales Report will be released on Friday.

Deanna Hawthorne-Lahre, StatFutures cofounder and trader, says that the market sees little change in the big picture.

“There is a whisper of wheat protein level worries in the Minneapolis wheat market working its way into my equations. Kansas wheat quality is what the wheat pros are looking at now,” Hawthorne-Lahre says.

She added, “The soybean market feels horrible, with continued pressure in spite of king hippo-size export business. We blew through a support level at $9.20 per bushel like it wasn’t even there.
For corn, it’s looking like Brazil’s safhrina crop is going to be a beast, she says.

“I’m hearing cash corn numbers out of Brazil that are unbelievably low, so doing some digging,” Hawthorne-Lahre says.

Wheat and corn prices are most likely ‘basing,’ she says. “But I see modest upside and see the markets remaining in trading range unlike the peanut gallery. The jury is still out on beans, but I have a bad feeling about them,” she says.

Wednesday’s Grain Market Review

On Wednesday, the CME Group’s corn market kept its strength, from the first bell, rallying off of yesterday’s Crop Progress Report that indicated a weaker good/excellent rating.

At the close, the July corn futures settled 5¢ higher at $3.72, and December futures finished 5¼¢ higher at $3.91.

July soybean futures closed 3¼¢ higher at $9.16; November soybean futures finished 1½¢ lower at $9.18.

July wheat futures closed ¼¢ lower at $4.29¼.
July soy meal futures finished $0.50 per short ton higher at $298.10. July soy oil futures finished 0.08¢ lower at 31.34¢ per pound.

In the outside markets, the Brent crude oil market is $1.51 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 47 points lower.

Jason Roose, U.S. Commodities grain analyst, says that the higher trade today is attributed to the USDA’s first crop rating.

“It was disappointing to the corn market. Corn crop ratings were 5% to 7% under trade estimates due to the cool, wet spring, adding premium to prices today. Also, the weak dollar is giving support short term,” Roose says.

Tuesday’s Grain Market Review

On Tuesday, the CME Group’s soybean market closed double digits lower, with the products dropping sharply too.

Investors await this afternoon’s delayed USDA Crop Progress Report.
At the close, the July corn futures finished 7¼¢ lower at $3.67, while December futures closed 6¾¢ lower at $3.85.

July soybean futures finished 13¾¢ lower at $9.12; November soybean futures finished 9½¢ lower at $9.19¾.

July wheat futures finished 8¾¢ lower at $4.29½.
July soy meal futures closed $4.20 per short ton lower at $297.60. July soy oil futures closed $0.18 lower at 31.42¢ per pound.

In the outside markets, the Brent crude oil market is 8¢ per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 43 points lower.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says the markets are reacting to the weather turning drier and less crop-threatening.

“So, we are selling everything off today. Forecasts for more rain at the end of the week, but crops in many areas are looking good and have emerged. The soybeans are not all up, but corn plants are up,” Scoville says.

Al Kuis, Kluis Commodities, says the markets will keep a close eye on this afternon’s USDA Crop Progress Report.

“The USDA Crop Progress Report Tuesday afternoon will have the first crop conditions report. That is likely to show conditions at 67% good to excellent compared with 72% to 74% good to excellent the last two years. Watch these four key states: Ohio, Indiana, Illinois, and Michigan,” Kluis stated in a daily note to customers.

Meanwhile, eastern Corn Belt farmers continue to report more rain, delaying replant efforts to their cornfields and delays in spraying fields for weed infestations.
On the demand side, the USDA announced fresh sales Tuesday.
Private exporters reported to the U.S. Department of Agriculture export sales of 130,000 metric tons of soybeans for delivery to unknown destinations during the 2016/2017 marketing year.
The marketing year for soybeans began September 1. BY MIKE MCGINNIS.

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