On Friday, the CME Group’s farm markets seem content with going higher.
In early trading, the May corn futures are 2¾¢ higher at $5.92¾.
July corn futures are 2½¢ lower at $5.79¾. New-crop December corn futures are 2½¢ higher at $5.14¼.
May soybean futures are 8¢ higher at $14.26. July soybean futures are 7¼¢ higher at $14.18¾. New-crop November soybean futures are 5¢ higher at $12.74.
July wheat futures are 1¢ higher at $6.56½.
July soymeal futures are $1.00 short term higher at $405.50.
July soy oil futures are +0.90 higher at 53.77¢ per pound.
In the outside markets, the NYMEX crude oil market is -0.07 lower (-0.11%) at $63.37. The U.S. dollar is lower, and the Dow Jones Industrials are 178 points higher (+0.52%) at 34,214 points.
Bob Linneman, Kluis Advisors, says that the soybean market is still not swaying farmers to plant beans over corn.
“The soybean bulls must be wondering when the market will realize that new-crop prices near $12.70 are not going to buy acres away from corn. The corn-to-soybean ratio near 2.48 is a neutral level. On April 6, the ratio was 2.63, which favored soybeans. Keep an eye on the charts for a pattern of when the highs and lows are hit throughout the week. The past two weeks we have seen lows on Monday or Tuesday, while the highs were Thursday or Friday,” Linneman stated in a note to customers.
Linneman added, “Analysts continue to estimate the impact that dry weather has had on Brazil’s second-planting (safrinha) corn crop. The reports have helped the bulls build a case for higher prices based on strong demand and reduced world supply. The situation escalates quickly if we see a weather concern in the U.S.”