On Thursday, the CME Group’s farm market hesitantly go higher, with weaker demand data.
In early trading, the May corn futures are 2¢ higher at $5.96.
July corn futures are 1 1/2¢ higher at $5.81. New crop December corn futures are 1 3/4¢ higher at $5.13.
May soybean futures are 7 1/4¢ higher at $14.17 1/4. July soybean futures are 7 1/4¢ higher at $14.09 1/2. New crop November soybean futures are 4¢ higher at $12.68.
July wheat futures are 1 1/2¢ lower at $6.48 3/4.
July soymeal futures are $0.70 short term higher at $403.70.
July soy oil futures are +0.24 higher at 52.46¢ per pound.
In the outside markets, the NYMEX crude oil market is -0.23 lower (-0.36%) at $63.13. The U.S. dollar is higher, and the Dow Jones Industrials are 249 points higher (+0.74%) at 33,979 points.
Separately, the USDA’s Weekly Export Sales Report Thursday shows weak demand figures for corn.
- Corn= 380,300 metric tons (mmt.) vs. the trade expectations of 500,000-900,000 mmt.
- Soybeans= 355,900 mt. vs. the trade’s expectation of 100,000-700,000 mt.
- Wheat= 331,000 mt. vs. the trade’s expectations of 350,000-750,000 mmt.
- Soybean meal= 97,500 mt. vs. the trade’s expectations of 75,000-100,000 mt.
Bob Linneman, Kluis Advisors, says that the corn market action could begin to squeez the short-positioned investors.
“The bulls are running with the momentum, pushing May corn over the $6 mark this morning. So far, the rally in the grains has been orderly. We have not seen “blow-off top” trading action, which is often seen when shorts are being squeezed out of a market,” Linneman stated in a note to customers.
Linneman added, “National basis indexes for corn and soybeans continue to tighten. The trend has been consistent and does not seem to be slowing. As long as this trend keeps tightening, the bull camp should have the upper hand.”