Corn, soybean prices close higher | Thursday, August 5, 2021

Investors want to know what August rains will do for the corn crop.

On Thursday, the CME Group’s farm markets jump higher.

At the close, the Sept. corn futures settled 10¢ higher at $5.55. New-crop Dec. futures closed 6½¢ higher at $5.53½. March corn futures ended 6¢ higher at $5.61.

Sept. soybean futures closed 3¼¢ higher at $13.35.

Nov. soybean futures finished 2¾¢ higher at $13.28. January soybean futures finished 2½¢ higher at $13.33.

Sept. wheat futures closed 4½¢ lower at $7.12.

Sept. soymeal futures finished $4.00 per short ton higher at $355.50.

Oct. soy oil futures closed 0.79¢ lower at 60.97¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.96 higher (+1.41%) at $69.11. The U.S. dollar is lower, and the Dow Jones Industrials are 188 points higher (+0.54%) at 34,980 points.

On Thursday, private exporters reported to the USDA export sales of 300,000 metric tons (11.0 million bushels) of soybeans for delivery to unknown destinations during the 2021/2022 marketing year.

The marketing year for soybeans began Sept. 1.

Bob Linneman, Kluis Advisors, says that investors are eyeing the August 12 USDA Report.

“Traders are receiving updated yield and production estimates from private analytic firms ahead of the USDA report a week from today. Veteran traders know it is difficult to guess the soybean yield in the first few days of August. Weather for the rest of the month plays such a vital role in how the soy crop will finish out the growing season. However, estimating corn production this time of year has a better track record. The amount of rain in August can still aid or diminish the corn crop. The tight U.S. balance sheet is a likely reason prices have stalled out in recent trading ranges as traders await further weather development,” Linneman stated in a note to customers.

Linneman added, “The moisture map showing the prior seven-day rainfall totals is not a slam dunk for the soybean crop. There are plenty of areas that were dry in July and have remained dry for the first few days of August. The current forecast for many of those areas is to remain dry for the next week.”

Separately, the USDA’s Weekly Export Sales Report Thursday shows decent demand figures for corn.

Corn = 898,400 metric tons (mt.) vs. trade expectations of 200,000 to 850,000 mmt.

Soybeans = 436,200 mt. vs. the trade’s expectation of 200,000 to 600,000 mt.

Wheat = 308,300 mt. vs. the trade’s expectation of 250,000 to 700,000 mt.

Soybean meal = 154,100 mt. vs. the trade’s expectation of 50,000 to 200,000 mt.

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Tags: soybeans, CME Group, wheat, CME Group's farm markets, soy oil, futures, corn