Wheat closed limit up, while corn finished stronger. March 3, 2022

To close the day’s session, the CME Group’s soybean market let go of sharp gains, and wheat stayed at it daily limit.

At the close, the May corn futures finished 22¢ higher at $7.47. July futures closed 9¾¢ higher at $7.03. December futures ended 2¾¢ higher at $6.12.

May soybean futures finished 4¢ higher at $16.67.

July soybean futures settled 1¼¢ lower at $16.32. New-crop November soybean futures finished 1½¢ higher at $14.54.

May wheat futures finished at its daily limit up of 75¢ higher at $11.34.

May soymeal futures ended $5.40 per short ton higher at $453.40.

May soy oil futures closed 1.06¢ lower at 74.81¢ per pound.

In the outside markets, the crude oil market is $2.68 per barrel lower at $107.92, the U.S. dollar is higher, and the Dow Jones Industrials are 56 points lower (-0.17%) at 33,834.

The CME Group’s farm markets have jumped on concern the Ukrainian farmers won’t get their crops planted, due to the war.

At midsession, the May corn futures are 28¢ higher at $7.53. July futures are 11¾¢ higher at $7.05. December futures are 11¾¢ higher at $6.21.

May soybean futures are 27¢ higher at $16.90

July soybean futures are 16¾¢ higher at $16.50. New-crop November soybean futures are 15½¢ higher at $14.68.

May wheat futures are 75¢ higher at $11.34.

May soymeal futures are $9.10 per short ton lower at $457.10.

May soy oil futures are 0.33¢ higher at 76.20¢ per pound.

In the outside markets, the crude oil market is $0.59 per barrel lower at $110.01, the U.S. dollar is higher, and the Dow Jones Industrials are 43 points lower (-0.13%) at 33,847.

Jack Scoville, PRICE Futures Group, says that the war in Ukraine is creating new rallies.

“Wheat is up another limit on ideas of little to no movement out of Ukraine and Russia into the export market, same for sun[flower] oil which is rallying beans and soybean oil and palm oil too, and corn from Ukraine. They are bouncing this around pretty good. Seen some selling from BRZ and USA producers plus funds and other specs going back and forth. Not sure about commercials but they have been buying overall,” Scoville says.

On Thursday, the CME Group’s farm markets are driven by demand and continued war news.

In early trading, the May corn futures are 10¾¢ higher at $7.35. July futures are 4¢ higher at $6.98. December futures are 3¾¢ higher at $6.12.

May soybean futures are 21¢ higher at $16.84

July soybean futures are 17¾¢ higher at $16.51. New-crop November soybean futures are 17½¢ higher at $14.69.

May wheat futures are 75¢ higher at $11.34.

May soymeal futures are $7.80 per short ton lower at $455.80.

May soy oil futures are 0.38¢ lower at 75.49¢ per pound.

In the outside markets, the crude oil market is $2.03 per barrel lower at $108.57, the U.S. dollar is higher, and the Dow Jones Industrials are 209 points higher (+0.62%) at 34,100.

On Thursday, private exporters report the following activity:

132,000 metric tons of soybeans for delivery to China – of the total, 66,000 metric tons is for delivery during the 2021/2022 marketing year and 66,000 metric tons is for delivery during the 2022/2023 marketing year
337,000 metric tons of corn for delivery to unknown destinations during the 2021/2022 marketing year
Separately, the USDA’s Weekly Export Sales Report Thursday shows strong demand figures for corn and soybeans.

Corn = 713,900 metric tons (mt.) vs. the trade’s expectations of 600,000 to 1.20mmt.
Soybeans = 2.24 mmt. vs. the trade’s expectation of 1.2 mmt to 2.8 mmt.
Wheat = 369,800 mt. vs. the trade’s expectation of 250,000 to 800,000.
Soybean meal = 155,400 mt. vs. the trade’s expectation of 100,000 to 300,000.
Al Kluis, Kluis Advisors, says investors will be keeping an eye on Ukraine’s farmers and their ability to plant this year’s crop.

“With the current situation in Ukraine, traders have to consider how much of the country’s crop will get planted this spring. Ukrainian farmers should start planting corn in 30 to 60 days. However, the infrastructure that has been damaged over the past seven days would make timely planting difficult, even if the war stopped today. How much risk premium is needed in grain prices to account for this?”

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