Soybeans steal the spotlight. Monday, January 3, 2022

After gapping open higher in the overnight, grains opened mostly higher to start Monday’s session before ending mixed on the day.

March corn finished 4¢ lower at $5.89 1/4, May corn shed 4¢ on the day to close at $5.91, and the July contract finished 3 3/4¢ lower at $5.89 3/4.

In the soy complex, across the board, markets posted gains.

January soybeans had a volatile day pushing higher into double digits early on, pulling back mid-day, and finally closing with some strength.

March soybeans finished 16 1/4¢ higher at $13.55 1/2, May soybeans added 16¢ finishing the session at $1365, and August beans added 16¢ settling at $13.53 1/4.

January soybean meal added 12.20 per short ton at $423.90, and January soybean oil ended lower at 56.21¢ per pound.

In the wheat pits, March wheat has settled 12 3/4¢ lower at $7.58.

In the outside markets, crude oil finished in positive territory adding 90¢ per barrel at $76.11. The U.S. dollar finished higher, and the Dow Jones Industrials finished 188 points higher (+0.52%) at 36,526.85

South American weather has taken center stage as the commodity markets continue to push commodities higher and will continue to remain the focal point of the markets as noted by many analysts including Al Kluis, Kluis Commodity Advisors.

“Because of the hot and dry conditions, the trade estimates for the size of the corn and soybean crops in Brazil and Argentina will move lower again this week,” he shared in his morning newsletter to clients.

Over the last four weeks, the Buenos Aires Grain Exchange has significantly adjusted crop ratings from 90% good-to-excellent to just 58% good-to-excellent in the last four weeks.

Today’s export numbers were on the lower end of expectations according to PJ Quaid, a broker with R.J. O’Brien, which is fighting the news of South American weather.

“Weather in South America has some rain forecasted in central and northern Argentina which is needed and forecasts are also showing reduced rain for Mato Grosso. So to me, it looks like the spots that need rain are getting it, and the spots that don’t aren’t,” he shares.

Later this afternoon the COT report will also drop, which should give a better picture of how the funds are positioned prior to the January 12 report, Quaid also stated.

Jason Roose, U.S. Commodities, echoes other analysts’ sentiment on South America, noting the soy complex has been able to take better advantage of the worsening situation in the south.

“South America and Argentina weather still continues to be the dominant news with limited rains potentially lowering production in these key growing areas, soybean meal has added the most premium with strong demand domestically and fear Argentina will limit exports,” says Roose.

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Tags: corn, soybean oil, soybeans, Grains, wheat, soybean meal