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Soybean Futures

Soybean Market Trades Slightly Higher Tuesday

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July 25th, 2017

On Monday, the CME Group’s farm markets trimmed losses but remained in a defensive posture as the extreme heat is seen leaving the Midwest and chances of rain are moving in.

The extreme heat has been taken out of future weather outlooks for the Midwest. Also, some parts of the Corn Belt received rain over the weekend.

At the close, the September corn futures finished 2½¢ lower at $3.77, and December futures ended 2¾¢ lower at $3.90¾.

August soybean futures settled 11½¢ lower at $9.97½; November soybean futures closed 12¼¢ lower at $10.10.

September wheat futures closed 10½¢ lower at $4.88¾.

December soy meal futures closed $4.10 per short ton lower at $332.70. December soy oil futures finished 0.22¢ lower at 34.05¢ per pound.

In the outside markets, the Brent crude oil market is $0.52 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 42 points lower.

Meanwhile, the USDA announced Monday a fresh corn sale.

Private exporters reported to the USDA export sales of 135,000 metric tons of corn for delivery to unknown destinations during the 2017/2018 marketing year.

The marketing year for corn began September 1.

Jack Scoville, The PRICE Futures Group’s senior market analyst, says that the lower trade Monday was related to some better-than-expected rains this weekend plus outlooks for light showers in eastern Iowa and southern Illinois this week.

“Most of the selling came in the first hour last night and some at the reopen today. Otherwise, the market has been stable and coming back some into the close. Crop conditions should drop tonight, and there is no real change in the overall forecast for hot and dusty in the south and west and wet in the north and east, so we might recover from these losses. Felt like a fund dump out overnight but the follow-through has been pretty limited. So, I hesitate to read too much into it,” Scoville says.


See Also: Corn Futures, Soybean Futures, Wheat Futures
Soybean futures, Corn, Wheat Tumble on Indications of Reduced Demand From Japan
By Jeff Wilson and Whitney McFerron - Mar 15, 2011

Soybean futures and corn tumbled the maximum allowed on the Chicago Board of Trade and wheat plunged the most in seven months on concern that the earthquake and nuclear crisis in Japan will reduce raw-material demand.

Equities in Japan had the biggest two-day drop since the 1987 crash as the risk of radiation leaks north of Tokyo escalated. U.S. Treasuries surged. Japan is the world’s leading buyer of corn, the third-largest importer of soybeans and the fifth-biggest purchaser of wheat.

“Increasing levels of radiation have people dumping positions in stocks and commodities and piling assets into cash,” said Alan Brugler, the president of Brugler Marketing & Management LLC in Omaha, Nebraska. “There’s increased risk aversion until the situation stabilizes in Japan.”

Corn futures for May delivery fell by the CBOT limit of 30 cents, or 4.5 percent, to close at $6.36 a bushel at 1:15 p.m., the lowest since Jan. 20.

Soybean futures for May delivery declined the 70-cent maximum, or 5.2 percent, to close at $12.70 a bushel, the lowest since Dec. 13.

Wheat futures for May delivery dropped 53 cents, or 7.4 percent, to close at $6.6775 a bushel in Chicago, the biggest decline since Aug. 6.

Oats fell the 20-cent maximum to a six-month low, while rice and soybean-oil futures also fell by the exchange limits in Chicago.

Shipments into Kashima and other ports on Japan’s east coast were stopped because of power outages after the 9.0- magnitude earthquake and tsunami, Zen-Noh, Japan’s largest corn buyer, said yesterday. Japan said today it plans to buy 32,381 metric tons of wheat in a tender on March 17, 76 percent less than it purchased last week.

Screen Imports

Asian countries moved to screen food imports from Japan following explosions at the Fukushima nuclear plant that raised radiation levels at the complex to harmful levels.

South Korea, Indonesia, Thailand, Malaysia, Singapore and the Philippines took steps to check fruit, vegetables, meat and seafood from Japan for nuclear material.

“It’s a fear-driven trade” focused on Japan, said Frank Cholly Sr., a senior strategist at Lind-Waldock, a broker in Chicago. “Demand is going to slow down, because even though they need to eat, they have more urgent things. They’ve got to stop the radiation leak, and they’ve got to find any survivors.”

Corn is the biggest U.S. crop, valued at $66.7 billion in 2010, followed by soybeans at $38.9 billion, government figures show. Wheat is the fourth-largest, behind hay, at $13 billion.

 - Jeff Wilson and Whitney McFerron in Chicago at Bloomberg.