Commodities mixed to close the year
Soybeans trading higher to close the year on reports of diminishing crop conditions in southern Brazil and Argentina. January beans closed one cent higher at $13.28 and three quarters, March closed three quarters higher at $13.39 and a quarter, January bean meal closed $1.90 lower at $411.70, January bean oil closed 45 cents higher at $56.30. The market will be closely watching South American weather moving forward. Soybean meal has been trading lower on concerns of light feedstock demand. Soybean oil was lightly supported by competitive pricing compared to other vegetable oils. Brazil’s forecast shows another chance of rainfall next week, but the hot, dry pattern is expected to mostly continue in southern Brazil and Argentina. U.S. soybean processing margins remain favorable, but a lack of export sales news continues to be bearish for the complex. January soybean meal closed $1.80 lower at $413.60 and soybean oil closed 85 points down at $55.85. The weekly soybean sales have been marked at under 525,000 metric tons of old beans, a marketing year low, and 75,000 tons of new beans.
Corn was lower Friday. March corn closed two and three quarter cents lower at $5.93 and a quarter, the May contract closed one and three quarter cents lower at $5.95. Continued demand for ethanol use wasn’t able to outweigh weather and export concerns as traders did some profit taking. Mixed South American weather has led to some sideways market action. Rain in northern Brazil has been bearish for the market short-term, but continued drought conditions in southern Brazil and Argentina have been supporting the market. Export and sales numbers remain bearish. The USDA’s weekly corn export total came in at 921,000 metric tons, down 16 percent on the week. Mexico and China were the biggest destinations for U.S. corn, each purchasing around 278,000 metric tons. USDA says old crop corn sales of more than 1.2 million metric tons is up 27 percent on the week but still below average. Overnight rainfall in dry parts of South America and a lack of export sales. The U.S. Energy Information Administration put out a bullish ethanol report for last week that could limit some of the bearish weather pressure in the market.
Wheat futures are lower on an odd trading day to close the year. March Chicago closed nine cents lower at $7.70 and three quarters, March Kansas City closed 11 and a quarter cents lower at $8.01 and a half, March Minneapolis closed nine and a half cents lower at $9.82. Limited export news has been bearish for the wheat complex the last few days. Light ending stocks and U.S. production are keeping the market from a large drop. Wheat could see sideways action to close out the trading session with little information to trade on. Wheat sales of 199,500 metric tons for this marketing year were down 53 percent on the week. But exports of 335,000 were up 76 percent on the week with Japan, Mexico, and Colombia as the biggest buyers. Weather concerns and Australian harvest numbers. The value of the dollar is keeping wheat trade below the top of its range for the day. Remerging drought conditions in the plains could be bullish for the wheat complex moving forward.