Corn, soybeans close mixed. Tuesday, December 7, 2021

On Tuesday, the CME Group’s farm markets ended mixed, before an expected announcement by the EPA on the renewable fuels mandate.

At the close, the March corn futures finished 2½¢ higher at $5.86. May futures ended 2½¢ higher at $5.88. July corn futures closed 2½¢ higher at $5.88.

January soybean futures finished 11¼¢ lower at $12.50.

March soybean futures closed 8¼¢ lower at $12.58. May soybean futures finished 8¼¢ lower at $12.65.

March wheat futures ended 2¼¢ higher at $8.08.

Jan. soymeal futures settled $2.90 per short ton lower at $349.70.

Jan. soy oil futures closed 0.76¢ lower at 57.10¢ per pound.

In the outside markets, the crude oil market is $2.56 per barrel higher at $72.05, the U.S. dollar is higher, and the Dow Jones Industrials are 501 points higher (+1.42%) at 35,728.

PJ Quaid, R.J. O’Brien broker, says that today’s trade has a lot to do with the EPA’s expected announcement of lowering the ethanol mandate volume for refiners.

“RINS (Renewable Identification Number), a ticket or identification number that is tied to each gallon of biofuel produced, are getting smoked and that is dragging everything with it,” Quaid says.

“The EPA is resetting the ethanol mandates today and an announcement is imminent,” Quaid says.

GRAIN MARKETS PRESSURED BY SELL-OFF
At midsession, the CME Group’s farm markets face headwinds.

At midsession, the March corn futures are 1¢ lower at $5.82. May futures are 1¼¢ lower at $5.84. July corn futures are 1¢ lower at $5.84.

January soybean futures are 14¼¢ lower at $12.47.

March soybean futures are 10¾¢ lower at $12.55. May soybean futures are 10½¢ lower at $12.63.

March wheat futures are 3¢ lower at $8.03.

Jan. soymeal futures are $4.10 per short ton lower at $348.50.

Jan. soy oil futures are 0.59¢ lower at 57.27¢ per pound.

In the outside markets, the crude oil market is $3.27 per barrel higher at $72.76, the U.S. dollar is higher, and the Dow Jones Industrials are 518 points higher (+1.47%) at 35,745.

CORN, SOYBEAN PRICES TRADE MIXED
On Tuesday, a fresh sale of soybeans and continued talk of Russia invading corn exporter Ukraine have the markets mixed.

In early trading, the March corn futures are 2¢ lower at $5.81. May futures are 2¢ lower at $5.84. July corn futures are 1¾¢ lower at $5.84.

January soybean futures are ¼¢ lower at $12.61.

March soybean futures are 2¾¢ higher at $12.69. May soybean futures are 2¼¢ higher at $12.76.

March wheat futures are 3¾¢ lower at $8.02.

Jan. soymeal futures are $1.30 per short ton lower at $351.30.

Jan. soy oil futures are 0.89¢ higher at 58.75¢ per pound.

In the outside markets, the crude oil market is $1.74 per barrel higher at $71.23, the U.S. dollar is higher, and the Dow Jones Industrials are 373 points higher (+1.06%) at 35,600.

On Tuesday, private exporters reported sales of 123,000 metric tons of soybeans for delivery to unknown destinations during the 2021/2022 marketing year.

Al Kluis, Kluis Advisors, says that investors continue to eye Brazil’s weather for its soybean crop.

“We have seen some of the largest crop projections for South America. The weather pattern appears to have changed in early December. With the La Niña impact, odds are good that hot, dry conditions will continue in much of southern Brazil and eastern Argentina,” Kluis stated in a note to customers.

Kluis added, “I am watching the price of natural gas continue to plummet. Natural gas prices fell sharply lower (11%) on Monday. Prices are now down 45% since the high in late September. I am in no hurry now to book spring fertilizer if you missed our recommendation last August. It is time to start checking on prices. However, if natural gas prices continue to move lower, then it suggests the cost of nitrogen should start to move lower.”

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