(Agriculture.com) – Despite strong weekly export sales and fresh soybean sales to China Thursday, the CME Group’s corn, soybean and wheat markets close lower.
At the close, the December corn futures finished 3 1/2 cents lower at $3.38.
November soybean futures settled 11 cents lower at $9.71.
December wheat futures finished 10 3/4 cents lower at $4.88.
For Dec. soybean meal futures, the contract ended $3.90 per short ton lower at $320.30; Dec. soybean oil futures finished $0.68 lower at $32.87.
In the outside markets, the crude oil is $1.14 per barrel lower, the dollar is lower, and the Dow Jones Industrials are 96 points higher..
Dustin Johnson, EHedger analyst, says that even though weekly export sales were strong, they should be expected to be stronger at this time of year.
“The market is probably convinced that the total exports will not grow from the current estimate of 1.7 billion just because we have a bumper crop. The world is flush with beans and we are expecting a total world stocks – use bean ratio well over 30%! The early bean yields have been really great and that is probably where most of this weakness is coming from. Corn yields have also been phenomenal. We have had a 26% drop in price since the spring insurance price was set. But, I would argue that many producers will have 10% to 20% yield increases, making up much of that difference.”
More fresh sales to China announced Thursday.
Private exporters reported to the U.S. Department of Agriculture export sales of 110,000 metric tons of soybeans to China during the 2014/2015 marketing year.
The marketing year for soybeans began September 1.
Separately, the USDA Weekly Export Sales released Thursday indicate soybeans beat expectations.
Wheat = 314,500 metric tons vs. the trade’s expectations of 350,000 to 650,000 metric tons.
Corn =722,400 mt vs. the trade’s expectations of 500,000 to 800,000 metric tons.
Soybeans = 1.468 million mt, vs. the trade’s expectations of 850,000 to 1,600,000 metric tons.
