MARKET DEVELOPMENT
Soybeans And Wheat Close Lower | Thursday, January 6, 2022
Soybeans And Wheat Close Lower | Thursday, January 6, 2022
06.01.2022 (www.agriculture.com) - At the close Thursday, soybean and wheat futures trimmed today's earlier losses but still ended in the red.
March corn futures finished 1½¢ higher at $6.03¾. May futures settled 1¾¢ higher at $6.04½. July corn futures ended 2¢ higher at $6.02¼.March soybeans closed 7½¢ lower at $13.87¼.
May soybean futures ended 7¢ lower at $13.96. July soybean futures finished 6¼¢ lower at $14.00¾.
March wheat futures closed 14¾¢ lower at $7.46.
March soymeal futures settled $2.40 per short ton lower at $411.
March soymeal futures settled $2.40 per short ton lower at $411.
March soy oil futures ended 0.54¢ lower at 58.90¢ per pound.
In the outside markets, the NYMEX crude oil market is $1.51 higher (+1.94%) at $79.36. The U.S. dollar is higher, and the Dow Jones Industrials are 142 points lower (-0.39%) at 36,264 points.
At midsession Thursday, nearby month corn futures are mostly unchanged while soybean and wheat futures continue trading lower, with disappointing export sales pressuring wheat and beans.
March corn futures are ¼¢ higher at $6.02½. May futures are unchanged at $6.02¾. July corn futures are also unchanged at $6.00¼.March soybeans are 9¼¢ lower at $13.85½.
May soybean futures are 9¼¢ lower at $13.93¾. July soybean futures are 8½¢ lower at $13.98½.
March wheat futures are 21½¢ lower at $7.39¼.
March soymeal futures are $2.20 per short ton lower at $411.20.
March soymeal futures are $2.20 per short ton lower at $411.20.
March soy oil futures are 0.42¢ lower at 59.02¢ per pound.
In the outside markets, the NYMEX crude oil market is $1.97 higher (+2.53%) at $79.82. The U.S. dollar is higher, and the Dow Jones Industrials are 110 points lower (-0.30%) at 36,296 points.
In the grains, traders seem more focused on export sales than any future shrinkage in South American harvests.
“Markets have started off in a softer tone on Thursday with soybeans and wheat pulling corn lower off of disappointing sales data,” says Matt Tranel, an agent/broker with ever.ag. “Soybean sales were reported at a 2021-2022 marketing year low of 382,700 metric tons [current marketing year]. A marketing low was also seen for wheat as well with sales of 48,600 metric tons. Corn saw just 256,100 metric tons in sales.”
“Wheat is pressing down against support levels that have held since October while corn remains glued to that $6/bu spot price, unwilling to move real far from it prior to the January WASDE due out on January 12,” Tranel says.
Wheat is a force in today’s trading, agrees Jake Hanley, managing director and senior portfolio strategist at Teucrium Trading, LLC.
“Wheat prices are leading grains lower this morning as weekly export sales were a disappointment across the board but were terrible for wheat,” Hanley says. “Front month wheat futures moved below the Dec. 15, and Dec. 16 daily lows, which could be an indication of technical selling.”
“Soybean prices are likely finding support on dryness in South America and analyst revisions for lower Brazilian production,” he says.
In early trading Thursday, CME corn, soybean, and wheat futures are all lower.
March corn futures are 4½¢ lower at $5.97¾. May futures are 4¼¢ lower at $5.98½. July corn futures are 4¼¢ lower at $5.96.March soybeans are 12¼¢ lower at $13.82½.
May soybean futures are 12¢ lower at $$13.91. July soybean futures are 12¢ lower at $13.95
March wheat futures are 9½¢ lower at $7.51¼. March soymeal futures are $5.20 per short ton lower at $408.20.
March soy oil futures are 0.18¢ lower at 59.26¢ per pound.
In the outside markets, the NYMEX crude oil market is $1.82 higher (+2.34%) at $79.67. The U.S. dollar is lower, and the Dow Jones Industrials are 8 points higher (+0.02%) at 36,415 points.
In overnight Globex trade, corn, soybean, and wheat futures were all down. In early morning comments to clients, Bob Linneman of Kluis Commodity Advisors remains focused on key South American crops.
“With the recent cuts to expected South American production, the soybean world balance sheet is likely to be trimmed below the 100 million metric ton mark,” he says. “The real concern: How close will that number be to 90 million metric tons?”
Separately, the USDA’s Weekly Export Sales Report Thursday shows sales below or at the low end of trade expectations:
- Corn = 256,100 metric tons (mt.) for the 2021/2022 marketing year vs. the trade expectations of 500,000 mt. to 1.20 million metric tons (mmt).
- Soybeans = 449,800 mt. [current and next marketing years combined] vs. the trade’s expectation of 400,000 mt to 1.2 mmt.
- Wheat = 51,100 mt.[mostly current year]
- Soybean meal = 31,800 mt.
Also, a daily release from USDA’s Foreign Agricultural Service says:
Private exporters reported sales of 102,000 metric tons of soybeans for delivery to Mexico during the 2021/2022 marketing year.