On Monday, the CME Group’s farm markets trade mostl;y lower.
In early trading, the March corn futures are 3 1/4¢ lower at $4.34 1/2. May corn futures are 3¢ lower at $4.36.
January soybean futures are 4¢ higher at $12.24 1/2. March soybean futures are 4 1/2¢ higher at $12.28.
March wheat futures are 4 3/4¢ lower at $6.03 1/2.
Jan. soymeal futures are $4.20 per short ton higher at $409.70.
March soy oil futures are 0.59 of a cent lower at 39.08¢ per pound.
In the outside markets, the NYMEX crude oil market is $2.12 per barrel lower (-4.3%) at $46.98. The U.S. dollar is higher, and the Dow Jones Industrials are 200 points lower (-0.67%) 29,978 points.
Al Kluis, Kluis Advisors, says that investors will be watching South America’s crop weather updates for price direction.
“It was another dry week, last week, across most of Argentina. The hit-and-miss rain pattern continued in Brazil. The week one and two forecasts again bring more rain to Brazil, while Argentina stays mostly dry. My source on Brazil reduced his corn crop projection for Brazil by 2 million metric tons (mmt). For Argentina, he reduced the corn and soybean crop projections each by 1 mmt. Going forward, he has a negative outlook for crops in both nations,” Kluis stated in a daily note to customers.
Kluis added, “Watch crop conditions in Argentina. The report last week from Argentina rated their corn crop 24% good to excellent. This is down 18 percentage points from last year. For soybeans, the ratings are 50% good to excellent. This is down 5% from last week and down 3% from last year. We are watching the direction of the trend, not just the numbers.”