Agriculture.com (25/09/2018) - DES MOINES, Iowa -- On Tuesday, investors underpinned the soybean market.

At the close, the December corn futures finished 3 1/4¢ higher at $3.63 3/4. March futures closed 3 1/4¢ higher at $3.75 3/4.

Nov soybean futures ended 4 3/4¢ higher at $8.45 3/4.  Jan. soybean futures finished 4 1/2¢ higher at $8.59 3/4.

Dec. wheat futures settled 6 1/4¢ lower at $5.20 3/4.

Dec. soymeal futures finished $1.70 per short ton higher at $309.20.

Dec. soy oil futures closed $0.13 higher at 28.65.

In the outside markets, the NYMEX crude oil market is $0.20 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 47 points lower.

Mike North, President Commodity Risk Management Group, says that today's trade is operating in a void of fundamental information.  

“Chart trade was the primer for the large move higher in soybeans.  The $8.50 level has served as stout resistance for nearby action.  As the session reopened, a quick bid ran prices to that level.  Once it was violated, a brief round of buying drove markets higher,” North says.  

From there the erosion was gradual, as sellers took an opportunity presented only once since August, North says.  

He added, “The corn found little to trade while wheat ran into some technical resistance of its own.  Ongoing winter wheat plantings have added some pressure to that situation, despite the ongoing concerns over global crop production and availability.”

Al Kluis, Kluis Advisors, says that investors will be watching outside markets, along with harvest progress.

“The continued rally in crude oil is long-term bullish for the entire commodity complex,” Kluis stated in a daily note to customers.

He added, “The USDA Crop Progress report on Monday showed nationwide corn harvest at 16% and soybean harvest at 14%. The 2018 crop harvest is going out very fast.”

On Tuesday, private exporters reported to the U.S. Department of Agriculture export sales of 239,630 metric tons of corn for delivery to Mexico during the 2018/2019 marketing year.
The marketing year for corn began September 1.

Monday’s Grain Market Review

Soybean futures closed lower on Monday as U.S. growers continue to collect what’s expected to be a record crop and after China over the weekend canceled planned talks with the U.S. negotiators. Grains finished higher. 

Prices last week rose almost 17¢ on speculation that the lowest prices in a decade would draw buyers including China despite the ongoing trade war between the countries. After last week’s gain, however, prices backed off as Commodity Futures Trading Commission data released Friday showed speculative investors held the biggest net-short position since January. 

U.S. growers are forecast to collect 4.693 billion bushels of soybeans this year on yields of 52.8 bushels an acre, both records. Stockpiles are forecast to more than double to 845 million bushels by the end of the marketing year that started on September 1, according to the Department of Agriculture. 

China over the weekend nixed plans to meet with U.S. negotiators after the Trump administration last week imposed tariffs on $200 billion in Chinese goods. The duties go into effect today, as do levies on $60 billion worth of U.S. imports to China. 

Corn futures, however, were higher on signs of demand for U.S. grain. Corn sales in the seven days through September 13 totaled 1.38 million metric tons, topping a range of forecasts, and soybean sales came in at 917,600 tons, also beating expectations, according to the USDA. On Friday, the government reported sales of 121,700 metric tons of corn for delivery to unknown buyers during the 2018-2019 marketing year that started on September 1. 

Soybean futures for November delivery fell 6¾¢ to $8.40½ a bushel on the Chicago Board of Trade. Soybean meal lost $1.40 to $307.50 a short ton, and soy oil gained 0.15¢ to 28.49¢ a pound.

Corn futures for December delivery rose 3¾¢ to $3.61 a bushel.

December wheat jumped 4½¢ to $5.26¼ a bushel, while Kansas City futures gained 3¾¢ to $5.29 a bushel. 

In the outside markets, the NYMEX crude oil market rose 1.9% to $72.15 a barrel, the U.S. dollar fell 0.1%, and the Dow Jones Industrial Average fell 0.6% in late-day trading.