Grains, oilseeds end week higher on oversold bounce
June 18, 2021 By Will Robinson Filed Under: Crops Markets, Market News
Soybeans closed sharply higher Friday after large losses on Thursday where the July contract lost $1.18 setting a single day record for loss on an active continuation basis. Soybean trade saw strength return to the market and the entire soy complex turned higher after a multi-day rundown mostly for soybean oil. Drought like conditions in several key soybean growing states were bullish for the market. Shipping progress from South America could limit the bullish movement next week. On Thursday, the U.S. dollar index closed above its 200-day average for the first time since early April which could limit bullish movement across all grains and oilseeds long-term.
Corn closed higher after trading limit down Thursday. Steep drops for both corn and soybeans came largely as China sharply decreased U.S. imports of the products. The trading partner is reportedly looking to lower commodity prices to lower the threat of high input costs as it rebuilds from the COVID-19 pandemic. Corn contracts had expanded trading limits Friday as a result. Lawmakers urging the administration not to make changes to biofuel policy has helped stave off fear of reduced blending targets. Drought like condition in Brazil continue to be bullish for the market as the competitor’s second corn crop loses yield potential. Lesser but similar hot, dry conditions in the U.S. is also bullish for the market but relief could be coming with forecasts showing some rain in the Midwest.
The wheat complex closed fully higher Friday on an oversold bounce with July Chicago leading the way for the nearby contracts. Warm weather during the week helped push the winter crop along. The market will continue to closely watch weather both in the U.S. and the Black Sea region. Little news came out of Russia. The value of the dollar has been a limiting factor for bullish movement within the wheat complex.
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