More rain, weak sales pressure farm markets | Thursday, July 22, 2021

Soybeans drop 28¢ per bushel.

On Thursday, the CME Group’s farm markets close weaker, but off their daily lows.

At the close, the Sept. corn futures finished 7¼¢ lower at $5.64½. New-crop Dec. futures closed 7¼¢ lower at $5.61½. March corn futures ended 6¾¢ lower at $5.68½.

August soybean futures closed 23¢ lower at $14.16.

Sept. soybean futures finished 28½¢ lower at $13.69¾. New-crop November soybean futures ended 27¼¢ lower at $13.62¾.

Sept. wheat futures are finished 18¼¢ lower at $6.92¼.

Aug. soymeal futures closed $6.60 per short ton lower at $363.20.

Sep. soy oil futures settled 0.69¢ lower at 63.53¢ per pound.

In the outside markets, the NYMEX crude oil market is 1.40 higher (+1.99%) at $71.70. The U.S. dollar is higher, and the Dow Jones Industrials are 55 points lower (+0.16%) at 34,853 points.

Separately, the USDA’s Weekly Export Sales Report Thursday shows weak demand figures for corn.

Corn = 136,200 metric tons (mt.) vs. the trade expectations of 100,000 to 400,000 mmt.

Soybeans = 238,300 mt. vs. the trade’s expectation of 150,000 to 500,000 mt.

Wheat = 478,200 mt. vs. the trade’s expectation of 350,000 to 600,000 mt.

Soybean meal = 87,400 mt. vs. the trade’s expectation of 100,000 to 300,000 mt.

Jack Scoville, PRICE Futures Group, says that today’s price movement is wild.

“We are selling off in response to the European weather model that is adding rain in the 11- to 15-day period. Hot and dry before that but some relief may be in sight. The U.S. weather model stays dry. So, the pattern change in 10 days is still far from confirmed but it was enough to get the funds selling today. The price action is looking ugly today, but who knows – maybe back up tomorrow,” Scoville says.

Al Kluis Kluis Advisors, says that the markets will wax and wane on weather forecasts for the Corn Belt.

“Grain traders continue to watch the hour-by-hour weather updates and how long it will stay hot and how far the heat dome moves east. The forecast this morning takes some extreme heat out and brings in more rain at the end of the six- to 10-day forecast,” Kluis stated in a note to customers.

Kluis added, “This week’s U.S. Drought Monitor (to be released today) will show that the drought is expanding farther east and south. Now most of Minnesota and some areas of northern Illinois and Nebraska will show moderate to severe drought to extreme drought.”

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Tags: corn, soybeans, wheat, CME Group's farm markets, soy oil