Market News
Corn, soybeans open 2021’s last week higher
Soybeans closed higher Monday; January beans up more than 30 cents at $13.62 and March beans up more than 30 cents at $13.71. USDA’s bullish crush report could support soybean prices through the week but available product and a year to year drop in soybean exports to China could limit movement before the calendar flips. South American weather is playing a strong role in grain futures with dry pockets in the southern half creating production concerns for the competitor’s corn and soybean crops. The weather concerns have created bullish action but that could reverse with some expectations for rain later this week.
Corn futures close higher on the day; March corn closed nine cents higher at $6.14 and May corn closed more than nine cents higher at $6.16. A reported export of nearly 270,000 metric tons to unknown destinations was bullish for corn futures. Ethanol plants are expected to be active buyers of corn indefinitely despite a recent drop in ethanol prices, adding support into the market. The demand picture for feedstocks and exports are more uncertain with cattle on feed numbers coming into December down six percent and corn export sales lower than this time last year. Dry pockets in the southern half of South America are adding bullish action into corn futures. Corn’s basis has shown signals of softening with harvest wrapped up which could impact trade.
The wheat complex traded lower to start the week; March Chicago was down more than 10 cents at $8.04, March Kansas City down more than 14 cents at $8.47, and March Minneapolis wheat closed eight cents lower at $10.24. March Kansas City wheat was up more than 50 cents last week on a combination strong demand and limited supply. But transportation difficulties from the U.S. Gulf to China is hampering the market. Any losses in the market will be slowed on light supply with the U.S’ lowest wheat production level in nearly 20 years. The wheat complex saw a downward push on a seemingly strong Australian harvest and global weather reports being bullish for competitors. Russian and Ukrainian tensions have settled a bit adding bullish pressure into the long-term outlook. The lower trade ended Kansas City and Chicago futures’ streak of closing higher six days in a row.
