Soybeans, corn finish lower | Thursday, July 15, 2021

Wheat prices stabilize after pushing higher earlier in the week.

On Thursday, the CME Group’s farm markets close weaker.

At the close, the Sept. corn futures finished 4¢ lower at $5.64. New-crop Dec. futures ended 2¼¢ lower at $5.56½. March corn futures closed 2¾¢ lower at $5.64.

August soybean futures finished 5½¢ lower at $14.47½.

Sept. soybean futures closed unchanged at $13.94. New-crop November soybean futures are 3¼¢ lower at $13.80.

Sept. wheat futures finished 17½¢ higher at $6.72.

Aug. soymeal futures closed $6.00 per short ton lower at $362.70.

Aug. soy oil futures finished 1.13¢ higher at 65.90¢ per pound.

In the outside markets, the NYMEX crude oil market is 1.08 lower (-1.48%) at $72.05. The U.S. dollar is higher, and the Dow Jones Industrials are 1 point lower (-0.02%) at 34,931 points.

Separately, the USDA’s Weekly Export Sales Report Thursday shows weak demand figures for corn. Here are the numbers:

Corn = 273,000 metric tons (mt.) vs. the trade expectations of 100,000 to 850,000 mmt.
Soybeans = 312,500 mt. vs. the trade’s expectation of 300,000 mt. to 750,000 mt.
Wheat = 424,700 mt.
Soybean meal = 197,100 mt.
Bob Linneman Kluis Advisors, says that traders are analyzing the forecasts for hotter temperatures next week.

“Grain futures have likely benefited from the strong move in canola futures earlier this week. It is worth noting that the grain contracts expired yesterday. The continuation charts left a bit of a gap when the next contract month became the lead. This creates targets on the charts. In the case of soybeans, it left about a 15¢ gap, while it was nearly $1.18 in corn. At this point, it seems more likely to see the soybean gap filled while we might be waiting a while for the corn gap to be filled,” Linneman stated in a note to customers.

Linneman added, “The potential for above-average heat next week is causing traders to add some risk premium back into prices. Although the current forecasts are keeping the hottest temperatures in the northern Corn Belt, it could take a toll on production if realized. Traders are also being tempted with possible return of La Niña this fall.”

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Tags: corn, corn futures, soybeans, wheat, CME Group's farm markets, soy oil