Soybeans close 18¢ higher. Wednesday, October 20, 2021

On Wednesday, the buyers are checking into the CME Group’s farm markets.

At the close, the Dec. corn futures finished 9¢ higher at $5.39. March futures closed 8¾¢ higher at $5.47. May corn futures closed 8¼¢ higher at $5.51.

November soybean futures ended 17½¢ higher at $12.45.

Jan. soybean futures closed 18¢ higher at $12.55. March soybean futures settled 18¾¢ higher at $12.64.

Dec. wheat futures finished 13¾¢ higher at $7.49.

Dec. soymeal futures closed $5.80 per short ton higher at $328.40

Dec. soy oil futures closed 2.31¢ higher at 64.70¢ per pound.

In the outside markets, the NYMEX crude oil market is $1.29 higher (+1.55%) at $84.25. The U.S. dollar is lower, and the Dow Jones Industrials are 160 points higher (+0.45%) at 35,617 points.

Bob Linneman, Kluis Advisors, says that the soybean market has had a nice recovery from its weekly low.

“Soybean futures were the leader on Tuesday as prices traded as high as 16¢ better on the day. Although prices ended the day 6¢ to 8¢ higher, the daily chart has now posted a 50¢ bounce off the low scored five days ago. December corn posted another higher high and higher low on Tuesday, but the bulls were unable to close out the day above the 20-day average. We are starting to see a ‘W’ pattern develop on the corn chart as we review trading over the past two months. Recall that this kind of pattern is often considered to be a basing pattern, or bottom-forming. A breakout over the $5.50 mark would likely encourage momentum traders to jump in on the long side,” Linneman stated in a note to customers.

Linneman added, “Analysts are updating their estimates for corn and soybean yields as harvest is progressing. With corn harvest reaching the 52% mark and soybeans hitting 60% in the Monday afternoon report, we are likely to see more updates to production. Will the bulls be able to withstand increasing production estimates?”

Successful Farming

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