Soybean prices reverse to close higher. Thursday, January 27, 2022

On Thursday, the CME Group’s soybean market started lower, ended higher.

At the close, the March corn futures settled 1 3/4¢ lower at $6.25. May futures finished 2¢ lower at $6.23. December futures ended 6¢ lower at $5.66.

March soybean futures settled 8 1/4¢ higher at $14.48.

May soybean futures ended 7¢ higher at $14.54. New crop November soybean futures closed 4¢ higher at $13.38.

March wheat futures ended 18¢ lower at $7.77.

March soymeal futures closed 4.20 per short ton lower at $404.70.

March soy oil futures finished 0.41 higher at 64.34 per pound.

In the outside markets, the crude oil market is $0.86 per barrel lower at $86.49 the U.S. Dollar is higher, and the Dow Jones Industrials are 120 points lower (-0.35%) at 34,047.

On Thursday, the CME Group’s farm markets watch the soybean complex bounce higher.

At midsession, the March corn futures are 1 1/4¢ lower at $6.25. May futures are 1 1/2¢ lower at $6.23. December futures are 5 1/4¢ lower at $5.67.

March soybean futures are 11¢ higher at $14.51.

May soybean futures are 9¢ higher at $14.56. New crop November soybean futures are 9¢ higher at $13.43.

March wheat futures are 14¢ lower at $7.81.

March soymeal futures are 5.30 per short ton lower at $405.80.

March soy oil futures are 0.50 higher at 64.43 per pound.

In the outside markets, the crude oil market is $0.45 per barrel lower at $86.90 the U.S. Dollar is higher, and the Dow Jones Industrials are 245 points higher (+0.72%) at 34,413.

Lori Nelsen, Ever.ag, says that farmers should not fall asleep watching the markets, because wild moves could be up ahead.

“Yesterday, corn had a nice move higher, as we look to see if we can move the March contract past the $6.30 resistance level. And, soybeans passed through $14.30 resistance, Wednesday,” Nelsen says.

Nelsen added, “Funds are buying; weather is dry; world relationships struggle; suggestions that we may likely see interest rates increase as soon as March to fight inflation; demand is strong; world supplies are tight; increasing U.S. carryouts, volatility, did I forget anything? It would be good to reward the market at these levels.”

“A start to your new crop sales should be looked at, and also how options help you protect profitable levels for you,” Nelsen says.

On Thursday, the CME group’s farm markets are not reacting to strong weekly export figures.

In early trading, the March corn futures are 4¢ lower at $6.23. May futures are 3 3/4¢ lower at $6.21. December futures are 2 1/4¢ lower at $5.70.

March soybean futures are 1/4¢ higher at $14.40.

May soybean futures are 1/4¢ lower at $14.46. New crop November soybean futures are 4¢ higher at $13.38.

March wheat futures are 12 3/4¢ lower at $7.82.

March soymeal futures are 0.80 per short ton lower at $399.70.

March soy oil futures are 0.67 higher at 64.60 per pound.

In the outside markets, the crude oil market is $1.08 per barrel higher at $88.43 the U.S. Dollar is higher, and the Dow Jones Industrials are 321 points higher (+0.94%) at 34,489.

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

Corn= 1.56 million metric tons (mmt.) (55.2 million bushels) vs. the trade expectations of 600,000-1.20 mmt. U.S. corn weekly exports need to average 21.0 million bushels to meet the USDA’s marketing year target.

Soybeans= 1.22 mmt. (37.7 million bushels) vs. the trade’s expectation of 500,000 mt-1.3 mmt. Of the total, China bought 738,000 mt. U.S. soybean weekly exports need to average 13.6 million bushels to meet the USDA’s marketing year target.

Wheat= 736,700 mt. vs. the trade’s expectation of 200,000-600,000 mt.

Soybean meal= 231,100 mt. vs. the trade’s expectation of 100,000-500,000 mt.

Bob Linneman, Kluis Advisors, says that investors are watching the news headlines.

“Some news outlets are hopeful that the Russia/Ukraine story will be dealt with by world politics and not tanks. The Federal Reserve announcement on Wednesday was to leave interest rates unchanged. However, they did indicate more action would be likely in the March meeting. They are trying to prepare the market for higher interest rates to combat inflation,” Linneman stated in a note to customers.

Linneman added, “The strength in soybeans could be attributed to report from Safras and Mercado (a Brazilian ag consultant) that Brazilian soybean exports for 2022 will be 85.5 million tons, down from the prior estimate of 90 million tons. The current target from the USDA has Brazil exports at 94 million tons. This would greatly change the world balance sheet if it becomes reality.”

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