Corn, soybeans and wheat close sharply higher. Tuesday, January 4, 2022

At the close Tuesday, corn and soybean futures put in strong gains, driven by the South American weather market. Wheat also closed up sharply.

March corn futures settled 20¼¢ higher at $6.09½¢. May futures 18½¢ higher at $6.09¼. July corn futures closed 16¾¢ higher at $6.06½.

March soybeans finished 34¼¢ higher at $13.89¾.

May soybean futures closed 32¾¢ higher at $13.97¾. August soybean futures settled 27¢ higher at $13.80¼.

March wheat futures finished 12¢ higher at $7.70.

March soymeal futures closed $3.40 per short ton higher at $414.70

March soy oil futures settled 1.91¢ higher at 58.33¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.97 higher (+1.27%) at $77.05. The U.S. dollar is higher, and the Dow Jones Industrials are 209 points higher (+0.57%) at 36,793 points.

At midsession Tuesday, gains in corn, soybean are up sharply from early trading.

March corn futures are 18¾¢ higher at $6.08¢. May futures are 17¢ higher at $6.08. July corn futures are 15¢ higher at $6.04¾.

March soybeans are 29¾¢ higher at $13.85¼.

May soybean futures are 28¢ higher at $13.93. August soybean futures are 21½¢ higher at $13.75¾.

March wheat futures are 7½¢ higher at $7.65½.

March soymeal futures are $1.20 per short ton higher at $412.50

March soy oil futures are 1.51¢ higher at 57.93¢ per pound.

In the outside markets, the NYMEX crude oil market is $1.06 higher (+1.39%) at $77.14. The U.S. dollar is higher, and the Dow Jones Industrials are 266 points higher (+0.73%) at 36,851 points.

Several factors drive today’s jump in bean and corn futures, says Jason Roose of U.S. Commodities in West Des Moines, Iowa.

“With a weak dollar and no deliveries, grains continue to surge higher, building weather premium,” Roose says. “Dry weather in Argentina and southern Brazil continue to be watched closely with lower production numbers forecasted.”

In early trading Tuesday, CME Group grain futures are higher as market concerns over South American weather outweigh disappointing U.S. exports.

March corn futures are 7¼¢ higher at $5.96½¢. May futures are 6¼¢ higher at $5.97¼. July corn futures are 5½¢ higher at $5.95¼.

March soybeans are 8¾¢ higher at $13.64¼.

May soybean futures are 8½¢ higher at $13.73½.

August soybean futures are 6¢ higher at $13.59¼.

March wheat futures are 9½¢ higher at $7.67½.

March soymeal futures are $2.50 per short ton lower at $408.80.

March soy oil futures are 0.52¢ higher at 56.94¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.43 higher (+0.57%) at $76.51. The U.S. dollar is higher, and the Dow Jones Industrials are 214 points higher (+0.58%) at 36,798 points.

In his early morning grain comments, Bob Linneman of Kluis Commodity Advisors sees futures struggling to gain unless exports strengthen.

“Until exports begin to improve, grain markets will have a hard time sustaining any rally,” he says. “The grain markets were higher on Monday until the release of the very disappointing USDA Export Inspections report. It showed corn and wheat inspections way below trade estimates and last year. In response, the entire grain complex tipped over.”

“I am watching the wide range of trade estimates ahead of the USDA final Crop Production and Grain Stocks report next Thursday,” Linneman adds. “If prices move lower into the reports, then it will be difficult to get a bearish report. The close the second week of January compared to the close this week is a signal of what the markets will do in the first quarter of 2022.”

Successful Farming

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