On Thursday, the CME Group’s farm markets close lower.
At the close, the Dec. corn futures finished 1/4¢ lower at $5.10 1/4. March futures closed 1/2¢ lower at $5.19 3/4. May corn futures ended 1 1/4¢ lower at $5.24.
November soybean futures settled 9¢ lower at $12.70 1/2.
Jan. soybean futures closed 10¢ lower at $12.78. March soybean futures finished 11¢ lower at $12.84.
Dec. wheat futures closed 17 1/4¢ lower at $6.92.
Dec. soymeal futures finished $0.10 per short ton higher at $337.90.
Dec. soy oil futures closed $1.30 lower at 56.19¢ per pound.
In the outside markets, the NYMEX crude oil market is 1.12 lower (-1.62%) at $68.18. The U.S. dollar is lower, and the Dow Jones Industrials are 164 points lower (-0.47%) at 34,866 points.
Britt O’Connell, ever. ag, says that markets are quiet as anticipation for tomorrow’s WASDE report release builds.
“In a deviation from the norm the USDA will release its harvested acreage a month early, citing that all of the information needed is available. The general sentiment of the trade is that there could be near a million acres of corn added to the balance sheet and if yesterday’s FSA slip up is at all telling, another million of corn and wheat. That nearly perfectly offsets the 3-5 million acres that was not accounted for this spring. It is worth noting that the FSA and NASS are two different agencies within the USDA and the FSA’s accidental early release isn’t telling of tomorrow’s numbers,” she says.
On Thursday, private exporters reported to the USDA export sales of 132,000 metric tons of soybeans for delivery to China during the 2021/2022 marketing year.
The marketing year for soybeans began Sept. 1.
Bob Linneman, Kluis Advisors, says that the market has had little reaction to the FSA inadvertently releasing acreage data ahead of schedule.
“This information was supposed to be released following the 11:00 am USDA report on Friday. Corn acreage was raised by 909,000 acres while soybean acreage was increased by 897,000 (as compared to the data of August 1). These numbers are within the range of what traders were expecting to see on Friday. Initially, the market reaction when trade resumed at 7:00 pm on Wednesday evening was very quiet,” Linneman stated in a note to customers.
Linneman added, “Could the report on Friday be the event that marks a low in the grain markets? Momentum indicators are oversold and we are approaching big levels of support on the charts. With the acreage information already released, now traders are looking for any big surprise to changes in yield on Friday.”
