Grains heading higher. November 17, 2021

Commodity markets ended higher on the day after showing signs of strength in the overnight session.

At the close, Dec. corn ended 4½¢ higher closing at $5.75¼. The deferred contracts followed through on today’s price action, also closing higher as March corn added 4¢ to end at $5.81½, and May corn put on 4¢ on the day to end at $5.85¾. Analysts expect corn to continue to “follow the leader” watching wheat especially closely this time of year.

January soybeans continued their rally today, after a quick pullback yesterday, to finish 25¾¢ higher today at $12.77. March beans closed the day 25¢ higher at $12.88½, while May soybeans were not able to hold their position above $13, still closing 24½¢ higher on the day to end at $12.96½.

Soybean meal also closed positive on the day up $7.20 per short ton at $374.70.

Soybean meal has now added about $60 since the October low, but more notably, about $31 of that rally came between Friday’s low to the high on Monday. Al Kluis, Kluis Advisors, said in a note to subscribers if meal begins to slip, soybeans will likely follow.

Soy oil added 0.06¢ to end at 59.23¢ per pound.

Over in Dec. wheat, following suit with the rest of grains, closed at $8.22½, up 12¢.

In the outside markets, Dec. crude oil pushed lower, after two consecutive days higher, ending at $78.27 per barrel, down $2.49 on the day. The U.S. dollar continues to trade higher today, which appears to be weighing on exports as export projections continue to run well behind USDA’s intended pace, and the Dow Jones Industrial Average is lower this morning down 182.88 points (-0.51%) at 35,956.34.

Joseph Christianson with Cargill, suggests today has largely been a demand-based move.

“Wheat and beans are both up on demand news today, and corn is following,” says Christianson.

Fresh export sales have been reported this morning by USDA with 132,000 metric tons of soybeans for delivery to China during the 2021/2022 marketing year, on the heels of yesterday’s virtual summit between President Biden and President Xinping. A second report of 30,000 metric tons of soybean oil for delivery to India during the 2021/2022 marketing year was also reported this morning.

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Tags: soybeans, Grains, wheat, soybean meal, soy oil, commodity markets, corn, price