Soybeans close 21¢ lower. Thursday, November 4, 2021

On Thursday, the CME Group’s farm markets follow the soybean complex lower.

At the close, the Dec. corn futures settled 4¼¢ lower at $5.59. March futures ended 4¾¢ lower at $5.67. May corn futures closed 4¢ lower at $5.72.

January soybean futures closed 21¼¢ lower at $12.22.

March soybean futures settled 21½¢ lower at $12.34. May soybean futures finished 20¢ lower at $12.44.

Dec. wheat futures closed 7¾¢ lower at $7.73.

Dec. soymeal futures ended $5.00 per short ton lower at $335.80.

Dec. soy oil futures closed 1.45¢ lower at 59.58¢ per pound.

In the outside markets, the crude oil market is $2.092 per barrel lower at $78.84 the U.S. dollar is higher, and the Dow Jones Industrials are 122 points lower (-0.34%) at 36,034.

On Thursday, private exporters reported sales of 100,000 metric tons of soybeans for delivery to Egypt during the 2021/2022 marketing year.

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

Corn = 1.22 million metric tons (mmt.) vs. the trade expectations of 700,000 to 1.40 mmt.
Soybeans = 1.86 mmt. vs. the trade’s expectation of 1.0mmt to 2.0 mmt.
Wheat = 400,100 mt. vs. the trade’s expectation of 180,000 to 500,000 mt.
Soybean meal = 226,600 mt. vs. the trade’s expectation of 100,000 to 250,000 mt.
Bob Linneman, Kluis Advisors, says that the Federal Reserve has caught some investors off guard.

“Over the last month, corn bulls were encouraged by the renewed strength from ethanol demand. Profit margins looked very good. Crude oil was down over $4 and RBOB gasoline was down nearly a dime at one point on Wednesday. That is not what the bull camp wants to see. The Federal Reserve announced it will start tapering some of its bond-buying programs this month. This caught a few analysts off guard. Many expected this tapering to start in first quarter of 2022,” Linneman stated in a note to customers.

Linneman added, “On Wednesday, December corn closed nearly 22¢ off the high hit on Tuesday, while December spring wheat settled 42¢ off the Tuesday high. Corn benefited from the strength in spring wheat over the past few weeks. We should not be surprised to see corn futures slip lower when spring wheat is doing the same.”

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