Grains and oilseeds decline as positions balance out

Home » Grains and oilseeds decline as positions balance outSource: Sosland Publishing Co.

Review of December 20th

• The balancing of positions ahead of the Christmas weekend sent wheat futures lower on Wednesday. Further pressure on wheat came from twin increases in wheat crop estimates in the Black Sea region, after SovEcon raised its wheat crop forecast for Russia from 89.8 million to 91.3 million tons, while APK-Inform raised its grain crop forecast for Ukraine to 56 from 54.7 million .3 million tons increased. Corn futures closed lower, at first two-month contract lows, two days after the U.S. government closed the Eagle Pass and El Paso rail bridges into Mexico to “redirect personnel” to process migrants crossing the border. The National Grain and Feed Association said in a Dec. 20 letter to Homeland Security Secretary Alejandro Mayorkas that the impacts are already being felt. Soybean futures fell on Wednesday as market participants continued to monitor weather forecasts for drought-hit Brazil and adjusted positions ahead of the holidays. Corn in March Futures fell 3¢ to close at $4.69¾ per bu. Chicago March wheat fell 12¾¢ to close at $6.10 per bu; The most deferred contracts for 2025 increased slightly. Kansas City March wheat fell 16½¢ to close at $6.25 per bu. Minneapolis March wheat fell 10¼¢ to close at $7.18 per bu. January soybeans fell 4¼¢ to close at $13.08¼ per bu. The January soybean meal price fell $3.30 to close at $399.90 per ton. January soybean oil fell 0.17 cents to close at 50.56 cents a pound.

• U.S. stock markets closed lower midweek, breaking a remarkable rally that pushed the Dow Industrials Index to several record highs last week. It was the biggest one-day percentage decline since September for the S&P 500 and the worst day since October for the DJIA and Nasdaq. The Dow Jones Industrial Average fell 475.92 points or 1.27% to close at 37,082. The Standard & Poor's 500 fell 70.02 points, or 1.47%, to close at 4,698.35. The Nasdaq Composite lost 225.28 points, or 1.5%, to close at 14,777.94.

• US crude oil prices rose again on Wednesday. February futures for light, sweet West Texas Intermediate crude rose 28¢ to close at $74.22 a barrel.

• The US dollar index moved to the high side on Wednesday, rising for only the second time in seven sessions.

• US gold Futures were lower on Wednesday. The February contract fell $3.90 to close at $2,034.50 an ounce.

Review of December 19th

• Soybean futures hit a one-week high early in Tuesday's session, extending Monday's gains, before falling to close lower on rainy Brazil forecasts. Technical gains drove wheat futures' gains on Tuesday, offsetting pressure from continued cheap global supply, as evidenced by Egypt's 480,000-ton purchase of Russian wheat. Corn futures fell to a nearly three-week low. Corn in March Futures fell 4¼¢ to close at $4.72¾ per bu. Chicago March wheat added 5¾¢ to close at $6.22¾ per bu. Kansas City March wheat added 13¾¢ to close at $6.41½ per bu. Minneapolis march Wheat rose 6¾¢ to close at $7.28¼ per bu. January soybeans fell 14½¢ to close at $13.12½ per bu. January soybean meal fell $9.60 to close at $403.20 per ton. January soybean oil Added 0.09¢ to close at 50.73¢ per pound.

• U.S. economic optimism led traders to buy shares of companies including Caterpillar and Walgreens Boots Alliance on Tuesday, helping the DJIA close to a fifth record high in five sessions. The Dow Jones Industrial Average gained 251.90 points or 0.68% to close at 37,557.92. The Standard & Poor's 500 gained 21.81 points or 0.59% to close at 4,768.37. The Nasdaq Composite rose 98.03 points or 0.66% to close at 15,003.22.

• US crude oil Prices rose on Tuesday. February West Texas Intermediate light sweet crude futures rose 97 cents to close at $73.44 a barrel.

• The US dollar index declined Tuesday for the fifth time in the last six meetings.

• US gold Futures were higher on Tuesday. The February contract rose $12.10 to close at $2,038.40 an ounce.

Review of December 18th

• U.S. soy complex futures were initially lower but recovered and posted a daily increase on good export demand, including a proposed increase in export tax on soy products by Argentina. Technical selling weighed on corn and wheat futures. The latter were also under pressure from abundant, cheap Russian wheat, which was expected to supply a significant portion of Saudi Arabia's 1.35 million tonne purchases over the weekend. Corn in March Futures fell 6 cents to close at $4.77 per BU, but later months were mixed. Chicago March wheat reduced 12¼¢ to close at $6.17 per bu. Kansas City March wheat fell 15¢ to close at $6.27¾ per bu. Minneapolis march Wheat fell 9¼¢ to close at $7.21½ per bu. January soybeans added 11¼¢ to close at $13.27 per bu. January soybean meal rose $7.20 to close at $412.80 per ton. January soybean oil Added 0.65¢ to close at 50.64¢ per pound.

• U.S. stock prices continued to rally on Monday, with the S&P 500 posting its seventh straight week of gains, as investors remained confident that the Federal Reserve will deliver a “soft landing” and bring inflation back to its 2% target while at the same time will avoid a recession. The Dow Jones Industrial Average rose 0.86 points to close at 37,306.02. The Standard & Poor's 500 gained 21.37 points or 0.45% to close at 4,740.56. The Nasdaq Composite rose 90.89 points or 0.61% to close at 14,904.81.

• US crude oil Prices were increased on Monday. January West Texas Intermediate light sweet crude futures rose $1.04 to close at $72.47 a barrel.

• The US dollar index as on most days of the previous week, declined on Monday.

• US gold Futures were higher on Monday. The February contract rose $4.80 to close at $2,040.50 an ounce.

Review of December 15th

• Soybean futures rose slightly in the short-term contract but fell thereafter as traders watched forecasts for favorable rains in dry areas of Brazil, where weather-related crop losses could boost export demand for U.S. soybeans. Wheat futures closed higher on technical buying, with many in trading watching for signals of further soft wheat sales to China. Spillover support from wheat futures, along with technical buying, helped push corn futures higher to close the week. Corn in March Futures gained 3¾¢ to close at $4.83 per bu. Chicago March wheat added 13½¢ to close at $6.29¼ per bu. Kansas City March wheat rose 6¼¢ to close at $6.42¾ per bu. Minneapolis march Wheat rose 13½¢ to close at $7.30¾ per bu. January soybeans added 1¾¢ to close at $13.15¾ per BU, although all later months were lower. January soybean meal rose $1.90 to close at $405.60 per ton; the May contract and beyond slipped lower. January soybean oil Added 0.48¢ to close at 49.99¢ per pound.

• U.S. stock markets were mixed on Friday, with the S&P 500 sliding even as the broad index posted its seventh straight weekly gain. The three major indexes rose more than 2% this week after the Federal Reserve indicated Wednesday that it could cut interest rates significantly next year, marking a major turning point in the Fed's roughly two-year campaign to curb inflation would. The Dow Jones Industrial Average gained 56.81 points, or 0.15%, to close at 37,305.16, the third new all-time record high this week. The Standard & Poor's 500 fell 0.36 points or 0.01% to close at 4,719.19. The Nasdaq Composite rose 52.36 points or 0.19% to close at 14,813.92.

• US crude oil Prices fell on Friday. January futures for West Texas Intermediate light sweet crude fell 15 cents to close at $71.43 a barrel.

• The US dollar index ended the week on a higher note after being weaker in the previous three trading days.

• US gold Futures were lower on Friday. The February contract lost $9.20 to close at $2,035.70 an ounce.

Review of December 14th

• U.S. stock markets closed higher on Thursday, enjoying the second day of a rally sparked by the Federal Reserve Bank's decision to keep interest rates on hold for now and signs that its aggressive anti-inflation measures may ease early next year. The week's advances were seen as an “everything rally” due to the broad base of rising corporate stocks, but some market analysts warn that investors could be pricing in deeper interest rate cuts in 2024 than the Fed has forecast. The Dow Jones Industrial Average rose 158.11 points, or 0.43%, to close at 37,248.35, the second new all-time record high this week. The Standard & Poor's 500 The price rose 12.46 points or 0.26% to close at 4,719.55. The Nasdaq Composite rose 27.59 points or 0.19% to close at 14,761.56.

• Robust export demand for U.S. supplies as the dollar continued to weaken sent soybean futures higher on Thursday. Dollar weakness and technical buying pushed wheat futures higher. And corn futures were nearly flat in choppy, directionless trading before closing narrowly mixed. Corn in March Futures fell ¼¢ to close at $4.79¼ per bu, with later months narrowly mixed. Chicago March wheat added 10½¢ to close at $6.15¾ per bu. Kansas City March wheat rose 4½¢ to close at $6.36½ per bu. Minneapolis march Wheat rose 3¾¢ to close at $7.17¼ per bu. January soybeans added 6½¢ to close at $13.14 per bu. January soybean meal rose $1.50 to close at $403.70 per ton. January soybean oil fell 0.32¢ to close at 49.51¢ per pound, with the most deferred contracts posting a slight increase.

• US crude oil Prices rose again on Thursday. January West Texas Intermediate light sweet crude futures rose $2.11 to close at $71.58 a barrel.

• The US dollar index After a two-day upswing on December 8 and 11, it fell for a third day on Thursday.

• US gold Futures were higher on Thursday. The February contract gained $47.60 to close at $2,044.90.30 an ounce.

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