Market News
Grain futures close shortened week mixed on position squaring
Soybeans finished the day mixed at on spread adjustments. Support to the complex mostly came to the nearby contracts with May futures leading the way. The complex came off a mostly higher close but sharp losses for soybean meal on Wednesday. Even so, strong crush values are keeping soybean meal supported at elevated prices. South American drought conditions are playing a strong role in supporting soybean prices with much of Brazil experiencing strong drought conditions. USDA has announced another soybean export sale to China. This one for 132,000 metric tons of old crop beans. Soybean export sales declined, though, in the latest Export Sales report from the USDA. Crude oil found support by the close as crude oil futures turned higher in afternoon trading. Soybean oil has been supported in the market as of late as buyers of sunflower oil have had to pursue alternatives while Ukrainian exports are diminished. The National Oilseeds Processors Association report comes out Friday which could impact soybeans next week. May soybeans closed six and 1/4 cents higher at $16.82 and 1/4, July soybeans ended the day 1/4 higher at $16.65 and 1/4, May soybean meal ended the day up $3.20 at $461.40, and May soybean oil closed 80 points higher at $78.91.
Corn futures closed mixed on spread adjustments with support for the nearby contracts. The market found support for most of the day on fund and technical buying after getting off to a sideways start for back-to-back days. The market is being cautious after reaching a new contract high on nearby corn yesterday and continuing soft gains today. President Biden’s announcement earlier this week to open summertime E15 sales has been adding support to the market. Second crop corn estimates in Brazil and Argentina continue to fall as crop conditions worsen due to severe drought. Corn was the bright spot in the latest Export Sales report from the USDA. Net sales of more than 1.2 metric tons (MT) were up 70 percent from the previous week and up 26 percent from the prior 4-week average. Increases were primarily for China. May corn futures closed six and 3/4 higher at $7.90 and 1/4, July corn finished the trading week gaining five and 3/4 cents at $7.83 and 3/4.
Wheat futures closed lower to sharply lower on profit taking and position squaring ahead of the long weekend, but core fundamentals remain positive. The Russian – Ukrainian war continues meaning prospects for Ukraine’s winter wheat crop are still dropping. Even with the ongoing tensions, Ukraine has been able to export light to moderate amounts of its product. Sales for wheat declined in the latest Export Sales report from the USDA. Weather remains dry in key wheat growing states. USDA’s most recent crop progress and condition report shows winter wheat in bad condition; 36 percent of the crop is rated poor to very poor with only 33 percent rated good to excellent. May Chicago closed 17 cents lower at $10.96 and 1/2, May Kansas City closed 20 cents lower but still holds as the premium nearby contract, and May Minneapolis closed sharply lower after trading only softly lower for most of the day – closing down 14 and 1/2 cents at $11.44 and 1/2.
