Ag Markets Fall as Investors Prepare for the Holiday Break
Category: Grains
(Agriculture.com) – On Tuesday, the CME Group’s farm markets were sold off, throughout the session.
At the close, the Dec. corn futures finished 3¢ lower at $3.67 1/2. March corn futures ended 2 1/2¢ lower at $3.78 1/4.
Jan. soybean futures closed 8 1/4¢ lower at $8.84 1/4. March soybean futures finished 8 3/4¢ lower at $8.98 1/4.
March wheat futures settled 2¢ lower at $5.31.
January soymeal futures closed $3.50 per short ton lower at $297.10. January soy oil futures settled 0.19 cents lower at 30.40¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.40 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 35 points higher.
Al Kluis, Kluis Advisors, says that investors continue to eye the crops left unharvested.
“The wheat market was very strong on Monday pulling corn higher, while soybeans again closed lower,” Kluis told customers in daily note.
Kluis added, “The USDA Crop progress report yesterday showed over 10 million acres of corn still out in the field in North and South Dakota, Minnesota, Wisconsin, and Michigan. With the major winter storm on its way for Thanksgiving, a lot of corn will not make it to the bin until 2020.”
Monday’s Grain Market Review
On Monday, the CME Group’s farm markets have the buyers’ interests.
At the close, the Dec. corn futures finished 1 3/4¢ higher at $3.70 1/2. March corn futures closed 2 1/4¢ higher at $3.80 1/2.
Jan. soybean futures settled 4 1/4¢ lower at $8.92 1/4. March soybean futures settled 4 1/2¢ lower at $9.07.
March wheat futures ended 14 1/4¢ higher at $5.33.
January soymeal futures closed $0.60 per short ton lower at $300.60. January soy oil futures ended 0.47 cents lower at 30.59¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.27 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 140 points higher.
The National Corn Cash Price Index has fallen, since October, while the Basis Index has improved, according to the latest data from cmdty by Barchart.
The National Soybean Cash Price Index has fallen, since October, while the Basis Index has improved.
Al Kluis, Kluis Advisors, says that the bullish news should provide support this week.
“The worst of the news about poor export demand for corn and slowing ethanol production is probably behind us. I’ll be watching the ethanol production report (the EIA Agency report) on Wednesday and the export sales report on Friday to see if we can get two strong weeks in a row,” Kluis told customers in daily note.
Kluis added, “Will U.S. trade negotiators accept the invitation from China to meet there in December to continue the trade talks?”
Meanwhile, the USDA issued a correction Monday to export sales announced last week.
FAS Program Announcement issued at 9:00 a.m. on Nov. 18, which announced export sales of 132,000 metric tons of corn for delivery to unknown destinations during the 2019/2020 marketing year was issued in error and FAS Program Announcement FAS-ESR-070-19, issued at 9:00 a.m. on Nov. 19, which announced export sales of 191,000 metric tons of corn for delivery to unknown destinations during the 2019/2020 marketing year was issued in error.
The correct announcement is as follows:
- Export sales of 132,000 metric tons of soybeans for delivery to unknown destinations during the 2019/2020 marketing year; and
- Export sales of 191,000 metric tons of soybeans for delivery to unknown destinations during the 2019/2020 marketing year.
The marketing year for soybeans began Sept 1.
