Soybeans add a dime, wheat loses 18¢ Monday

Corn prices dip slightly.

On Monday, the CME Group’s farm markets close mostly higher.

At the close, the March corn futures settled ½¢ higher at $4.24. May corn futures ended ¾¢ higher at $4.27¼.

January soybean futures settled 9¢ higher at $11.69½. March soybean futures closed 8½¢ higher at $11.74¼.

March wheat futures finished 18¢ lower at $5.96¾.

Jan. soymeal futures closed $0.40 per short ton higher at $380.70.

Jan. soy oil futures closed 0.49¢ higher at 38.73¢ per pound.

In the outside markets, the NYMEX crude oil market is $0.34 per barrel higher (+0.73%) at $46.91. The U.S. dollar is lower, and the Dow Jones Industrials are 7 points lower (-0.03%) at 30,038 points.

Jack Scoville, PRICE Futures Group, says today’s markets have seen a wild day with buying seen in the overnight markets then collapsing after the reopen.

“At midsession, the markets are coming back a bit. We are still concerned about dry weather and the lack of sizeable Chinese demand in our markets right now. The South American weather is still mostly dry, but some areas are getting some significant rains in northeastern Argentina as well as some areas in central Brazil. Just about all areas are likely to get some rain over the next couple of weeks, but ideas are it will still be dry,” Scoville says.

Scoville added, “The export inspections were strong for beans and improved for corn but wheat was a dog.  We need to see the grains start moving along with the beans. I think funds are on both sides of the market and producers are quiet. Industry might be buying a bit but not so sure about that,” Scoville says.

Al Kluis, Kluis Advisors, says that end users are buying on the market dips.

“The setback in grain prices last week brought in a lot of domestic and export demand. The firming basis and spreads are both positive signals for higher grain prices. It looks like commercials are buying when prices move lower and funds are selling,” Kluis told customers in a daily note.

He added, “I am watching the December 2020 to March 2021 corn spread. Today is the last trading day for the December contract, and the December contract is trading at a 4¢ premium to the March 2021 price. The way the bull spreads have started to work again on the recent pullback in the corn market is a positive signal for prices.”

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