Weekly Market Wrap-Up
Grain Market Commentary
Friday, November 19, 2021
by Jennifer Klindt, Merchant, The Andersons
Monday’s trade showed losses for corn and gains for soybeans to begin the week. Soybeans rallied following strong short-term demand in the meal market due to drought in Canada. Weekly export inspections showed corn and wheat above expectations, along with soybeans at average expectations. NOPA released their soybean crush report at nearly 184 million bushels, above trade expectations and the third highest crush on record. The USDA also confirmed the sale of 264,000 tonnes of soybeans to unknown in 2021/22 and 198,200 tonnes of corn to Mexico in 2021/22 and 2022/23. Weather in South America remained favorable as the growing season is off to an ideal start. December corn futures closed the day 0.75 cents lower at $5.7650. January soybean futures closed the day 13 cents higher at $12.5725. Monday’s Crop Progress marked corn harvest at 91% complete and soybean harvest at 92% complete nationwide.
Trade on Tuesday presented weakness across all commodity sectors. Corn futures traded lower following downside in wheat due to hesitation from importers at high prices. Soybeans also traded lower after a reversal in the soybean complex. The USDA confirmed the sale of 270,000 tonnes of corn to Mexico and 161,000 tonnes of soybeans to unknown for delivery in 2021/22. December corn futures closed the day at 5.71, a loss of 5.5 cents. January soybean futures closed the day at 12.5125, a loss of 6 cents.
Wednesday’s session showed upside for corn and soybeans due to heavy buying in soybeans following an appeasement between President Biden and Xi that China will continue to buy US soybeans. The USDA confirmed the sale of 132,000 tonnes of soybeans to China and 30,000 tonnes of soybean oil to India for delivery in 2021/22. Weekly ethanol data revealed higher ethanol output week over week and lower stocks, showing strong demand. December corn futures closed the day 4.25 cents higher at 5.7525. January soybean futures closed the day 25.75 cents higher at 12.77.
Trade on Thursday displayed volatility as fundamental buying pushed corn and soybean futures higher before a reversal shortly after the open of the day session. The EPA proposed giving refineries more time to fulfill blending obligations, leading to fears about mandates. Export sales data released was within trade expectations. December corn futures closed the day at 5.73, a loss of 2.25 cents. January soybean futures closed the day at 12.6525, a loss of 11.75 cents.
Friday’s session was uneventful to end the week. Trade began lower as a result of profit taking due to new COVID lockdowns across Europe. Talk continues about the high cost of fertilizer and its potential impact on 2022 acreage. December futures closed the day 2.25 cents lower at 5.7075. January soybean futures closed the day 2 cents lower at 12.6325. Topics that will set the tone for future sessions include fundamental positioning, final yield estimates, South American weather, demand, and the energy sector.
December corn futures opened the week at $5.7625 and closed the week at $5.7075, a loss of 5.5 cents.
January soybean futures opened the week at $12.4225 and closed the week at $12.6325, a gain of 21 cents.
December wheat futures opened the week at $8.1975 and closed the week at $8.23, a gain of 3.25 cents.