Soybean Prices Rally on Strong Export Demand

What Pushed Soybean Prices Higher?

Good afternoon from Chicago…

Soybean prices pushed higher today thanks to improving export numbers. However, neither corn prices nor wheat prices could follow the leader. Even though the Nasdaq and the S&P 500 hit record levels in New York, grain traders in Chicago were looking mainly at red tickers thanks to a U.S. dollar that saw strong gains for two straight days.

Today’s good news is that the U.S. economy is growing faster than economists had anticipated. The U.S. Department of Commerce reported this morning that GDP in the third quarter hit 3%.

The consensus expectation called for 2.5%.

Here’s our recap from the Chicago Board of Trade.

December Corn Prices Fall Under $3.50

Next-month corn contracts just don’t want to rally. The December corn futures contract shed 1.75 cents and closed the day at $3.4875. The March contract dropped 2 cents and finished at $3.625.

There weans’t too much news on the corn front today. The only thing generating headlines on a day dominated by equity reports and economic data was news that the U.S. will try to bolster its ethanol sales to India. Ted McKinney at the trade department is going to lead a mission to India to explore potential deals in the future. The U.S. ships about $1.3 billion in agricultural commodities to the world’s most populous country each year.

After markets closed, the CFTC reported its weekly report on managed money. Speculators hiked their net shorts on the corn complex by another 10,659 contracts.

Soybean Prices Push Higher

The November soybean contract saw some gains today. Soybean prices for the upcoming contract finished a tick above $9.75 after a four-cent gain. The January contract also added four cents and finished at $9.865.

December soy meal futures were flat today and closed at  $312.10.

Next-month soy oil futures contracts added 0.34 cents and are now 34.84 cents per pound.

This weekend, we’re looking for freezing temperatures to start hitting the High Plains and the western corn belt. Meanwhile, the USDA reported a big private export sale to China for the new marketing year. The shipment is estimated at 238,000 metric tonnes.

The CFTC said speculators have cut their long position on soybeans. The decline for the week ending Tuesday was another 28,390. The long position is razor thin now at 2,065 contracts.


Wheat Prices Wilt Again

Another day, another downturn in wheat prices. Even though the afternoon wheat beers at Ceres and Cactus are sweet, there’s nothing tasty about another 4.5 cent downturn for SRW prices. The December contract fell to $4.2775.

As our friends at AgChieve explain in teh following chart, that March contract is now at a new low. There was a tw0-day reversal back in late September that had offered some optimism…

Managed money in Chicago added 6,273 contracts to their net short position. The total short position now sits at 83,865 contracts.
About the Author
Garrett Baldwin

Garrett Baldwin is a content strategist and editor at FarmLead. He covers the global grain markets and public policy issues related to the agricultural industry. He is a graduate of the Medill School of Journalism at Northwestern University. He also holds a Master’s Degree in Economic Policy from The Johns Hopkins University, an MS in Agricultural Economics from Purdue University, and an MBA in Finance from Indiana University.

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