Soybeans Add to Gains Tuesday

May 23rd, 2018

By:

Category: Commentary, Grains, Miscellaneous, Oilseeds

(Agriculture.com) – With U.S. and China normalizing their trade issues, the CME Group’s soybean market has moved up, but off its day’s high Tuesday.

At the close, the July corn futures finished 2¢ higher at $4.04¾. December futures finished 2¼¢ higher at $4.23.

July soybean futures closed 5¼¢ higher at $10.30½. November soybean futures finished 5¼¢ higher at $10.39.

July wheat futures closed 14¼¢ higher at $5.21½.

July soy meal futures ended $1.60 per short ton lower at $377.50. July soy oil futures closed 0.09¢ higher at 31.51¢ per pound. 

In the outside markets, the NYMEX crude oil market is $0.24 lower, the U.S. dollar is higher, and the Dow Jones Industrials are 53 points lower.

Jason Roose, U.S. Commodities analyst, says that the relaxing of trade disagreements with China has a long tail, pushing up prices.

“Grains continue to add risk premium for the second day in a row, following the positive trade outcome over the weekend between U.S. and China. This could confirm continued strong exports; the final planting progress and weather the next 10 days will be key for price directions,” Roose says.

 Monday’s Grain Market Review

On Monday, the CME Group’s farm markets get boost from U.S., China agreement to ‘table’ their trade disagreements.

At midsession, the July corn futures are 1½¢ higher at $4.04. December futures 1¼¢ higher at $4.21.

July soybean futures are 23¼¢ higher at $10.21. November soybean futures are 22¼¢ higher at $10.30.

July wheat futures are 8½¢ lower at $5.09.

July soy meal futures are $2.40 per short ton higher at $378.70. July soy oil futures are 0.24¢ higher at 31.22¢ per pound. 

In the outside markets, the NYMEX crude oil market is $0.69 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 302 points higher.

Jason Ward, managing director of Northstar Commodity, says that the biggest rallying factor today is a “euphoric” response to the U.S.-China trade war aversion.

“There was so much liquidation in the soybean market and buyers waiting on the sidelines “just in case” of the tariff going into effect, this is now freeing people up to buy,” Ward says.

He adds, “I also think the ‘big bust’ of a rain system over the weekend takes a little acreage pressure off soybeans as much more corn was able to get planted than expected. It’s why corn was muted in its response today and actually traded lower, but even now corn has come back.”

There is a lot of bullish ag fundamentals and more usage pledged by China that entices buyers, he says.

“Now let’s see some action, because frankly, China has promised things in the past only to come up short on those promises, just so this isn’t another one of those times,” Ward says.

He adds, “For today though, I am one thankful trader that a trade war has been averted, so far.”

 

 

Add New Comment

Forgot password? or Register

You are commenting as a guest.