Sharp rise for soybeans. Tuesday, March 8, 2022

At the close Tuesday, soybean contracts ended double digits higher and wheat down but much recovered from midsession lows.

The May corn futures ended 2¼¢ higher at $7.53. July futures finished 1¼¢ lower at $7.26. December futures settled 1¢ higher at $6.43¾.

May soybean futures closed 30¼¢ higher at $16.89¾.

July soybean futures ended 21¾¢ higher at $16.55¾. New-crop November soybean futures finished 20¼¢ higher at $14.73¼.

The May wheat futures contract settled 7½¢ lower at $12.86½.

May soymeal futures closed $14.60 per short ton higher at $473.30.

May soy oil futures finished 1.53¢ higher at 75.75¢ per pound.

In the outside markets, the crude oil market is $5.77 per barrel higher at $125.17, the U.S. dollar is lower, and the Dow Jones Industrials are 76 points higher (+0.23%) at 32,894.

At midsession Tuesday, as traders position ahead of tomorrow’s USDA supply-demand estimates, soybeans see double-digit gains along with strong soy oil prices and wheat gives up recent price rises. Corn futures have weakened from early trading.

The May corn futures are 12½¢ lower at $7.38¼. July futures are 18½¢ lower at $7.08¾. December futures are 5¼¢ lower at $6.37½.

May soybean futures are 24¢ higher at $16.83½.

July soybean futures are 12¢ higher at $16.46. New-crop November soybean futures are 6¼¢ higher at $14.59¼.

The May wheat futures contract is $1.07 lower under expanded limits at $11.87.

May soymeal futures are $13.20 per short ton higher at $471.90.

May soy oil futures are 0.24¢ higher at 74.46¢ per pound.

In the outside markets, the crude oil market is $5.58 per barrel higher at $124.98, the U.S. dollar is lower, and the Dow Jones Industrials are 305 points higher (+0.93%) at 33,122.

Jack Scoville of the Price Futures Group sees part of today’s trading as anticipation of Wednesday’s WASDE (World Agricultural Supply and Demand Estimates). He doubts that today’s pullback in wheat futures marks the start of a trend.

“Corn and soybeans are positioning before the reports, yes,” he says in an email message. “Wheat is finally trading and the emotion of the war is in the prices. We can set back a little more, but overall prices should remain very high.”

Tuesday, after a volatile start Monday and overnight trading that saw wheat prices pull back, nearby Chicago wheat futures are unchanged.

In early trading, the May corn futures are 5½¢ lower at $7.45¼. July futures are 10¼¢ lower at $7.17. December futures are 1¼¢ higher at $6.44.

May soybean futures are 20½¢ higher at $16.80.

July soybean futures are 14¢ higher at $16.48. New-crop November soybean futures are 7½¢ higher at $14.60½.

The May wheat futures contract is unchanged at $12.94 after being locked up by 85¢ Monday.

May soymeal futures are $4.70 per short ton higher at $463.40.

May soy oil futures are 1.09¢ higher at 75.31¢ per pound.

In the outside markets, the crude oil market is $5.86 per barrel higher at $125.26, the U.S. dollar is lower, and the Dow Jones Industrials are 50 points lower (-0.15%) at 32,768.

On Tuesday morning USDA released news of these sales by private exporters to the Philippines and China:

• 193,000 metric tons of hard red spring wheat for delivery to the Philippines during the 2022/2023 marketing year

• 132,000 metric tons of soybeans for delivery to China for delivery during 2022/2023 marketing year

• 126,000 metric tons of soybeans for delivery to unknown destinations during the 2021/2022 marketing year

Al Kluis of Kluis Commodity Advisors says, “We will continue to see active export sales announced this week to China and other nations around the world that have not been able to get the corn and wheat delivered that they had booked from Ukraine.

“I am watching the new-crop 2022 soybean-to-corn price ratio. The current ratio (2.24-to-1) will not result in more soybean acres this year unless we have a cold wet spring,” Kluis adds.

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