Soybean prices close off daily highs | Wednesday, February 2, 2022

On Wednesday, the CME Group's farm markets finished mixed.

At midday, the March corn futures closed 12¾¢ lower at $6.22. May futures closed 11½¢ lower at $6.22. December futures closed 4¾¢ lower at $5.73.

March soybean futures ended 16¾¢ higher at $15.45.

May soybean futures finished 15¼¢ higher at $15.49. New-crop November soybean futures closed 7¾¢ higher at $13.89¾.

March wheat futures finished 14¢ lower at $7.55.

March soymeal futures settled $0.90 per short ton lower at $435.10.

March soy oil futures closed 0.15¢ higher at 65.98¢ per pound.

In the outside markets, the crude oil market is $0.05 per barrel lower at $88.15. The U.S. dollar is lower, and the Dow Jones Industrials are 216 points higher (+0.61%) at 35,622.

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Soybeans pull back

After starting sharply higher, the CME Group's soybean market has pulled back.

At midday, the March corn futures are 16¾¢ lower at $6.18. May futures are 16¢ lower at $6.17. December futures are 7½¢ lower at $5.70.

March soybean futures are 3¢ higher at $15.31.

May soybean futures are 2¢ higher at $15.36. New-crop November soybean futures are 3¾¢ higher at $13.85.

March wheat futures are 16¾¢ lower at $7.52.

March soymeal futures are 3.80 per short ton lower at $432.20.

March soy oil futures are 0.10¢ lower at 65.73¢ per pound.

In the outside markets, the crude oil market is $0.66 per barrel lower at $87.54. The U.S. dollar is lower, and the Dow Jones Industrials are 117 points higher (+0.33%) at 35,523.

Jack Scoville, PRICE Futures Group, says that the soybean market remains supported by South America's inclement crop weather.

"The market rallied in beans on the fundamentals as it is turning hot and dry in southern Brazil, Paraguay, and northern Argentina again and spreading into most of Argentina for the next couple of weeks. It looks like funds bought the soybean market and then sold. Wheat prices are down as Ukraine/Russia tension festers but goes nowhere. For the corn market, I'm not sure why it took the bath it did. We should close on a firm note," Scoville says.

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$16 soybeans?

On Wednesday, the CME Group's soybean market gains strength from lower crop estimates out of Brazil.

In early trading, the March corn futures are 3¾¢ higher at $6.38. May futures are 4¢ higher at $6.37. December futures are 1½¢ higher at $5.79.

March soybean futures are 25½¢ higher at $15.54.

May soybean futures are 24½¢ higher at $15.58. New-crop November soybean futures are 13¾¢ higher at $13.95.

March wheat futures finished 14¢ lower at $7.55.

March soymeal futures settled $0.90 per short ton lower at $435.10.

March soy oil futures closed 0.15¢ higher at 65.98¢ per pound.

In the outside markets, the crude oil market is $0.45 per barrel higher at $88.65, the U.S. dollar is lower, and the Dow Jones Industrials are 63 points higher (+0.18%) at 35,468.

On Wednesday, private exporters report sales of 380,000 metric tons of soybeans for delivery to unknown destinations during the 2021/2022 marketing year.

Bob Linneman, Kluis Advisors, says that it's important to watch price trends.

"The strength in the soybean market may have been sparked by further reductions to Brazil production estimates by two well-respected analysts. The new target range of 128.5 to 130 million metric tons is down from the early-season expectation of 145 million tons."

Linneman added, "The race is on to see which analyst will drop their Brazil soybean production target the farthest. So far, one firm has pegged Brazil at 125 million metric tons. Considering the recent trend, that could be a reality. We started the season with targets of 145 million metric tons."