August 5, 2021

George Cafe Journal

The Power of Success

Corn, soybean markets react quietly to USDA reviews | Monday, July 12, 2021

On Monday, the CME Group’s farm markets experienced minor reaction to today’s USDA Supply/Desire, WASDE Reports.

At the shut, the Sept. corn futures completed 15¾¢ larger at $5.45¾. New-crop Dec. futures shut 16¢ bigger at $5.33½. March corn futures finished 15½¢ better at $5.40. 
August soybean futures settled 25¢ better at $14.04. 

Sept. soybean futures closed 19¾¢ greater at $13.58. New-crop November soybean futures concluded 21¼¢ increased at $13.50 1/4.

Sept. wheat futures shut 25¾¢ larger at $6.40¾. 

Aug. soymeal futures shut $2.90 per quick ton better at $357.00.

Aug. soy oil futures settled 1.70¢ increased at 64.05¢ for each pound.

In the exterior marketplaces, the NYMEX crude oil market place is -.40 reduced (-.54%) at $74.16. The U.S. greenback is increased, and the Dow Jones Industrials are 110 details larger (+.32%) at 34,980 factors.

PJ Quaid, unbiased broker, says that the current market did not assume substantially of the USDA numbers.

“These figures seldom budge a lot from the end of June amount. Dec corn futures are again above the 100-day going ordinary and that retains bulls delighted,” Quaid says. 

Trade ranges are starting to tighten, Quaid claims.  

“Dec. only has a 15¾¢ range. That does not bode effectively for traders extended volatility. Volatility is breaking. Corn requires even larger ranges to spend for the volatility level corn was trading at past week,” Quaid suggests.

Al Kluis, Kluis Advisors, says that traders will be watching two USDA Studies nowadays for price course. 

“I am seeing both USDA report releases right now. I believe the trade is underestimating corn made use of for ethanol this yr and up coming, and that the ending shares of corn may perhaps be considerably less than the trade expects for the 2021/2022 advertising and marketing yr. As constantly, the most essential part of the day is to look at the trade reaction after the report and the selling price motion — from 11:30 a.m. into the close of trade,” Kluis mentioned in a observe to prospects.  

Kluis added, “The USDA Crop Development report later on nowadays will present corn and soybean scores unchanged to 1% far better. Even with slight improvement, these mid-July rankings are in the base 30% of the crop scores for this 7 days above the very last 35 several years. Except if we get timely rain every single week for the rest of the 12 months, it will be tough to get trendline corn and soybean yields this calendar year in the U.S.”