Soybeans close 39¢ higher. Tuesday, February 1, 2022

The CME Group’s soybean complex remained on fire throughout the session Tuesday.

At the close, the March corn futures settled 8½¢ higher at $6.34. May futures finished 9¼¢ higher at $6.33. December futures ended 4¢ higher at $5.77.

March soybean futures closed 38¢ higher at $15.28.

May soybean futures settled 39¢ higher at $15.34. New-crop November soybean futures ended 15¢ higher at $13.82.

March wheat futures closed 7¾¢ higher at $7.69.

March soymeal futures ended $17.10 per short ton higher at $436.00.

March soy oil futures settled 1.01¢ higher at 65.83¢ per pound.

In the outside markets, the crude oil market is $0.05 per barrel higher at $88.20, the U.S. dollar is lower, and the Dow Jones Industrials are 55 points higher (+0.16%) at 35,186.

The CME group’s farm markets are in the green.

At midsession, the March corn futures are 11½¢ higher at $6.37. May futures are 11¼¢ higher at $6.35. December futures are 5¢ higher at $5.78.

March soybean futures are 37¼¢ higher at $15.27.

May soybean futures are 37¾¢ higher at $15.33. New-crop November soybean futures are 17¾¢ higher at $13.84.

March wheat futures are 12¾¢ higher at $7.74.

March soymeal futures are $15.30 per short ton higher at $434.20.

March soy oil futures are 1.10¢ higher at 65.92¢ per pound.

In the outside markets, the crude oil market is $0.27 per barrel lower at $87.88. The U.S. dollar is lower, and the Dow Jones Industrials are 34 points higher (+0.10%) at 35,166.

On Tuesday, the CME Group’s farm markets have plenty of news to trade.

In early trading, the March corn futures are 4½¢ higher at $6.30. May futures are 4½¢ higher at $6.28. December futures are 1¼¢ higher at $5.74.

March soybean futures are 19¢ higher at $15.09.

May soybean futures are 19¢ higher at $15.14. New-crop November soybean futures are 11¾¢ higher at $13.78.

March wheat futures are 12¼¢ higher at $7.73.

March soymeal futures are $12.10 per short ton higher at $431.00.

March soy oil futures are 0.11¢ lower at 64.71¢ per pound.

In the outside markets, the crude oil market is $0.79 per barrel lower at $87.36. The U.S. dollar is lower, and the Dow Jones Industrials are 10 points lower (-0.03%) at 35,120.

On Tuesday, private exporters reported the following activity:

132,000 metric tons of soybeans for delivery to China during the 2022/2023 marketing year
110,000 metric tons of corn for delivery to Mexico during the 2021/2022 marketing year

Bob Linneman, Kluis Advisors, says that news of a lower soybean crop in Brazil, combined with China buying continues to underpin the markets.

“Further reduction to production estimates to start the week is continuing the trend. New targets for total soybean production now rest between 128.5 and 130 million metric tons. That is down from the preplanting targets of close to 145 million metric tons. Wheat prices gave up early-session gains to post a big outside day down. Prices closed below the prior-week low and below the 20-day average. The weakness in wheat put pressure on the old-crop corn contracts. March corn also had an outside day on the daily chart, with prices closing near the lows of the day.”

Linneman added, “The trend of declining crop production estimates for Brazil has fueled the rally for the soybean bulls. Eventually, traders will want to confirm these production targets before adding more risk premium to the market. $15 could be that mark, but traders are likely to keep the rally alive if China continues to buy U.S. soybeans.”

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