Soybean prices slumped, corn prices can’t find traction, and oil prices hover near a two-month high. This is your daily market recap from the Chicago Board of Trade.
No Soybeans! Bad Soybeans!
Hopefully, no one named their dog “Soybeans.”
The dog would be hiding under the bed as traders screamed and cursed the crop.
The November contract was off 12.5 cents and obliterated renewed hopes that we’d see $10.00 bushels before expiration. The March contract also fell under $10.00 after finishing the day down 12.25 cents. The March contract is sitting at $9.9725.
Falling soybean prices also weighed on canola prices. In Winnipeg, November canola futures contracts finished down 4.10 cents to close the day at CAD $514.30. The January contract dipped 4.10 cents to close at CAD $516.80.
Get the Best Soybean Prices Online
There were plenty of headlines grabbing our attention today.
Among them is a story over at the Des Moines Register. Remember last week when we discussed the trend that Iowa farmers have mostly turned away from oat production due to the lack of a local market?
Well, it turns out that not even traditional corn and soybeans are giving them the best bang for their buck. They’re looking today at selling ORGANIC corn and soybeans. Iowa farmers are boosting organic production by 5% a year, according to the USDA.
Now, we don’t have to go into this trend. We recognize farmers are looking at alternatives to help improve their bottom line. And naturally, we want what is best for farmers.
With that said, we do want to offer our services as a solution to help improve their bottom lines. First, remember it’s critical that you get your grain tested.
You might be taking your corn and soybeans to elevators and taking whatever price they offer after they conduct their tests. But do you know if there is a better offer out there for certain specifications?
Second, you should price your grain on FarmLead. It doesn’t have to be your entire crop. It doesn’t have to be half your acreage. But test out FarmLead and see if there are buyers outside your area who are looking to fill a buying quota. You’ll never know if you don’t try.
You can do it for free on the FarmLead marketplace in just minutes.
Corn Prices Slide Friday
Cash corn prices saw a 2.5 cent boost Friday, but futures contracts were sliding all the way into December 2020. The December corn contract shed 2.25 cents to close the day at $3.4825. The March contract was flat and finished at $4.445.
Our friends at AgChieve note in the chart below that the December contract has been stuck in an range over the last month and a half. The contract has not been able to break above the $3.55 level. However, it continues to find support when it drifts below that $3.50 figure.
The downturn came despite the USDA reporting that U.S. producers sold more than 237,000 metric tonnes across two deals.
The first deal is for 102,400 MT to private buyers down in Mexico. The other 135,000 MT is heading to South Korea.
Traders are digesting a slew of bearish analyst reports that predict that corn yields will increase in the November WASDE report.
HRW Wheat Whips Higher
While SRW contracts in Chicago were off 0.25 cents on the day, we saw an uptick in wheat prices in Minneapolis and Kansas City. December HRW contracts added 1 cent to closed the day a tick below $4.27. MGEX spring wheat contracts added 2 cents to close just under $6.25.
The mixed trading came shortly after positive news in the trade game.
The USDA reported a private sale of 300,000 metric tonnes to Iraq. This deal comes a day after Iraq announced intentions to purchase about 450,000 metric tonnes.
Oil Prices Rally to Two-Year High
Crude oil prices are up more than 15% since the start of September. Improving economic outlooks and increased geopolitical risks are driving prices higher. It also helps that the world’s largest producers are engaged in an active game of collusion.
OPEC and Russia have voiced support to extend a deal to cap excessive global production.
Analysts like Richard Mallinson at Energy Aspects are keeping a close eye on the potential for military conflict between Turkey and citizens in the Kurdish region of northern Iraq and the ongoing financial collapse of Venezuela.
Even though Venezuela has some of the richest farmland and the largest oil supplies in the Western Hemisphere, it’s run by a corrupt dictator with the economic common sense of a kindergarten class president.