Grains close higher. Wednesday, December 22, 2021

Corn and soybeans both finished on a high note breaking through $6, and $13 respectively. This break above these key areas of resistance marks the first time in months the two commodities have seen this strength.

March corn ended 4¼¢ higher ending the session at $6.02 1/2, May corn also held above $6, adding 4¾¢ to end the day at $6.04, and July corn futures added 4¾¢ finishing the day at $6.02½.

Across the board, soybean futures posted large gains on Wednesday adding 20¾¢ in the January contract to close at $13.28¾, March soybean futures added 22¼¢ gains to close at $13.41, and May soybean futures posted 22¢ higher to close at $13.41.

March wheat futures followed suit adding 15¢ today to close at $8.14.

January soymeal futures gained $8.80 per short ton higher settling at $402.80.

January soy oil futures ended higher as well at 54.83¢ per pound.

As we near the end of the holiday week, the commodity markets will be closed on Friday in observance of Christmas, and the markets should see less volume the closer we get to Christmas. Yet, that appears to have done little to stop the markets from pushing back toward fresh highs for the month.

The outside markets traded mixed with crude oil adding $1.65 per barrel settling at $72.77. The U.S. dollar finished lower, and the Dow Jones Industrials added just 185 points (-0.52%) closing at 35,677.71.

Al Kluis, Kluis Commodity Advisors, said in his morning newsletter to customers that aside from South American weather, he’ll be focusing on the outside markets.

“I am watching the stock and energy markets rally back after the Monday macro meltdown. If the stock market can rally to new highs late this year, then it is a positive signal for improved commodity demand,” he shared.

PJ Quaid, R.J. O’Brien broker, says weather in South America is putting the squeeze on markets today.

“Weather in South America along with the gamma squeeze for tomorrow’s January options expiration is adding to the anxiety for beans,” says Quaid.

Since breaking through $6 corn, and $13 soybeans, Quaid also shared his new areas of resistance which are now at $6.06¾ for corn, and $13.45 for March beans.

Jason Roose, U.S. Commodities, also added that the light holiday week has made the perfect environment to break through key resistance.

“Dry weather conditions in South America, along with slow producer selling is giving the grain markets big gains. Allowing little resistance in a thin holiday trade environment. The weak U.S. dollar is also adding support,” Roose shares.

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