Grains finish mixed. Wednesday, January 5, 2022

After posting tremendous gains during Tuesday’s session, corn and wheat appear to be making corrections on Wednesday.

March corn finished 7¼¢ lower at $6.02¼, May corn lost 6¾¢ settling at $6.02¾, and July corn finished the day 5¼¢ lower at $6.02¾.

Soybeans made early session losses before recovering to finish the day in positive territory. March soybeans added 5¢ closing at $13.94¾, May soybeans are up 5¼¢ settling the day at $14.03, and July soybeans posted 5½¢ gains to close at $14.07.

Chicago wheat has softened considerably on the day, giving up most of yesterday’s gains finishing 9¼¢ lower in the March contract at $7.60¾.

March meal closed $1.30 per short ton lower at $413.40.

March soy oil has held its strength finishing at 59.44¢ per pound.

In the outside markets, crude oil added 77¢ per barrel to close at $77.76. The U.S. dollar finished lower, and the Dow Jones Industrials reversed course midday, ending 152 points (-0.41%) lower at 36,647.33.

Al Kluis, Kluis Commodity Advisors, said in his morning newsletter to clients that South American weather won’t be the area he’s watching.

“I am watching the weather in South America and the United States. The dry pattern continues in the Southern Plains and winter wheat conditions in the U.S. are moving sharply lower,” he shared.

Additionally, 132,000 tons of soybeans were reported by USDA heading to unknown destinations but had little impact on today’s trade.

PJ Quaid, a broker for R.J. O’Brien, shared that Tuesday’s trade action was money pouring in from sideline participants, and today those participants didn’t show up to play.

“Yesterday was money pouring in from all the participants that were on the sidelines on Monday, today not so much. The buyers did not show up today like yesterday so volume on the breaks in the market is a lot lighter than the volume on the rallies, which has made the path of least resistance today to the downside,” he said.

Another indication of today’s trading is still South American weather, according to Quaid. With new forecasts now indicating rain in the 11- to 15-day outlook, he shares that is another reason for the break in corn today.

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Tags: soybeans, markets, wheat, soy meal, soy oil, corn