US farm markets closed the final day of the year’s trading session mostly lower.
Indeed, corn prices wrapped up with fractional losses, around 0,45%.
That represented down 2,06% for the week, but meaning net zero price change over the past two weeks.
Soybean prices were fractionally in the black at the closing bell, gaining around 0,1%.
Beans, however, were down around 0,25% for the week.
Soymeal on Friday closed with 0,46% losses, but gained around 1,38% for the week.
Soy oil was up by 0,81% for the end yaer’s session and 1,55% for the week.
The wheat complex, meantime, has closed into the red, posting the final drop, prior into the new year.
In fact, on Friday CBOT SRW prices closed 1,15% in the red with the March contract that posted 4 red candles in the last 5 sessions for a net weekly drop by 5.4%.
KC wheat prices closed the final session of 2021 with 1,38% losses.
KC had been the big winner during prior week ( up 6.36%), but past week was the big loser, as was down 6.96%.
MPLS wheat also closed Friday 0,96% weaker, posting weekly losses by 4.9% and retreating below the $10 mark.
Particularly, CBOT corn futures were down 12,5 cents to $5.93/bu.
CBOT soybean futures were down 3,3 cents at $13.29/bu.
Soymeal jumped by $5,6/smt at $411,70 smt.
Soy oil gained $0.86 cents at $56.30.
CBOT soft red winter (SRW) futures fell 44 cents to close at $7.71/bu.
KCBT hard red winter (HRW) futures tumbled 60 cents to end at $8.02/bu.
MGE hard red spring (HRS) futures shedded 50.5 cents to close at $9.82/bu.
Corn futures jumped 23.4% this year.
The corn market has risen for four years in a row.
Wheat futures were up 20.6% for the year, their fifth straight yearly gain and their biggest since 2010.
Soybean futures, which hit their highest level since 2012 in May, but were up just 2.4% for the year.
In this context, as of December 30, 2021, US corn 3YC (Gulf) was at $278/mt (down $4/mt from last week).
US soybean 2Y (Gulf) quoted at $534/mt (down $1/mt from last week).
US wheat No 2 Hard Red Winter (HRW) was valued at $376/mt (down $18/mt from last week).
US wheat No 2 Soft Red Winter (SRW) was at $336/mt (down $13/mt from last week).
USDA’s look at past week’s average cash corn oil prices show the localities ranged from 55.6 c/lb – 57.13 cents.
Those compared to 53.67 c/lb – 55.25 cents/lb from prior week.
Cash ethanol bids ranged from $2.43/gal in NB to $2.66/gal in EC.
Those compare to $2.60/gal – $3.15/ prices from prior week, but are still above gasoline futures which were $2.2960/gal.
As for DDGS bids, the weekly update showed NOLA ranged from unchanged to -$5/MT from prior week, quoting between $230- $250, while the FOB from PNW was unchanged to $288/MT.
Also, USDA reported the average B100 cash biodiesel prices were $4.88/gallon for the week that ended 12/30 up $ 0.16 from prior week.
USDA’s weekly Crush report showed the estimated processing value of soybeans was $17.47/bu on $13.70 cash beans.
That compared to $16.65 reported prior week on $13.24 beans.
The CME Synthetic Soy Crush on the board closed with a $1.97/bu margin.
In energy markets, oil prices slid on Friday but posted their biggest annual gains in 12 years.
Brent crude futures, indeed, fell $1,75, or 2.2%, to $77.78 a barrel, while U.S. West Texas Intermediate (WTI) crude futures dropped $1,78, or 2.31%, to $75.21 a barrel.
For the week, Brent crude futures, rose by about 2.15%.
U.S. West Texas Intermediate (WTI) crude futures ended up 1.92% on the week.
Brent ended the year up 51.2%, while WTI had a 55.19% gain, the strongest performance for the two benchmark contracts since 2009, when prices soared more than 70%.
Both contracts touched their 2021 peak in October with Brent at $86.70 a barrel, the highest since 2018, and WTI at $85.41 a barrel, the loftiest since 2014.
Meantime, oil prices firmed on this morning as the market kicked off 2022 on a positive note with suppliers in focus ahead of Tuesday’s OPEC+ meeting, although surging COVID-19 cases continued to dent demand sentiment.
Thus, Brent crude added 56 cents, or 0.72%, to $78.34 a barrel, as of 0710 GMT.
U.S. West Texas Intermediate crude futures gained 52 cents, or 0.69%, to $75.73 a barrel.
On equities markets, U.S. stocks on Friday settled moderately lower in thin holiday trading.
Weakness in technology stocks weighed on the overall market.
Stocks were also under pressure Friday after the 7-day average of new U.S. Covid infections rose to a record of 355,991 on Thursday.
Despite optimism that the omicron Covid variant will cause less severe illness, restrictions to slow the spread of the virus could slow economic activity globally and exacerbate a persistent global supply-chain squeeze.
Year-end profit-taking also pressured stocks Friday, with the S&P 500 up +27% this year.
However, stock losses were limited by carry-over support from strength in Asian markets after China’s manufacturing activity in December unexpectedly expanded at the fastest pace in 5 months.
In deed, The China Dec manufacturing PMI unexpectedly rose +0.2 to 50.3, stronger than expectations of a decline to 50.0 and the fastest pace of expansion in 5 months.
Likewise, the China Dec non-manufacturing PMI unexpectedly rose +0.4 to 52.7, stronger than expectations of a decline to 52.0.
Thus, on Friday the Dow Jones Industrial Average slid 0.2% to 36,338.30, but posted 1,08% weekly gains.
The S&P 500 slipped 0.3% to 4,766.18 but was up 0,85% for the week.
The Nasdaq fell 0.6% to 15,644.97.
However for the week posted only marginally losses as was down 0,05%.
Meantime, Asian stock markets were mixed on this morning, 2022′s first trading day.
In fact, the Hang Seng in Hong Kong lost 0.6% to 23,252.69 while Seoul’s Kospi rose 0.4% to 2,990.80.
India’s Sensex opened up 1% at 58,809.99. Singapore, Jakarta and Malaysia advanced.
Thai markets were closed.
Also Monday, Singapore’s government announced its economy grew by 7.2% last year, rebounding from the previous year’s 5.4% contraction.
On the weather side, the last day of 2021 has been also be the last day of unseasonably warm temperatures.
A cross-country winter storm system slated moved across the Heartland, caused the mercury to fall well below freezing in much of the Midwest and Plains.
Snowfall travelled over the Northern and Central Plains and also shifted into the upper Midwest.
Rains hovered on the southern edge of the system, dousing the Southern Plains and Eastern Corn Belt with more rain.
All that bodes well for winter wheat crops in the Plains and depleted soil moisture levels across the U.S. Heartland.
The most recent data issued for the U.S. Drought Monitor was released on December 30.
An estimated 73.49% of U.S. acreage was in some sort of abnormal to alarmingly dry condition as of this past Tuesday, up fractionally from prior week’s report.
Much of the dryness continues to be concentrated in the West and across the Plains.
As of December 28, 87.6% of acreage in the High Plains were in some sort of dry to drought category while 39.67% of Midwest acreage was classified as being in an abnormally dry to extreme drought condition.
Meantime, to start the week, there is a Slight Risk of severe thunderstorms over much of coastal North Carolina today.
Heavy Snow for parts of the Central/Southern Appalachians and Mid-Atlantic on today.
Heavy Snow for the Cascades and northern Sierra.
Freeze Warnings from south Texas to the Western/Central Gulf Coast through this morning.
Critical Fire Weather risk for a portion of eastern New Mexico and the Texas Panhandle on Tuesday.
From South America, the weather outlook is unchanged, with increased chances for moisture in South Brazil and part of Argentina on tap for this week.
Meantime, the Buenos Aires Grains Exchange reported Argentine wheat harvest reached 89.7% complete, as they maintained their 21.5 MMT production estimate.
Also, the Buenos Aires Grain Exchange reports that corn planting is 66.5% complete and rates the crop 58% good/excellent, 34% fair, and 8% poor/very poor.
That was a slide of 19% from the previous week.
Soybeans are now 81.4% planted and rated 56% good/excellent, 36% fair, and 8% poor.
In this context, as of December 30, 2021 – Argentina Wheat Grade 2 export price, (Up River) was at $310, down $7 from prior week.
Argentina corn feed was up $3 for the week, closing at $268.
Brazilian corn feed (Paranagua) was at $276, down $4 from prior week.
Argentina barley feed, was unchanged week on week, posting at $302.
Argentina soybean was unchanged at $577.
Brazilian soybean fell $2 finishing the week at $522.
In European market, wheat and corn prices were also down the end year’s session.
The wheat contract indeed, eased by 12 euros to 278.25 euros posted a 4,13% weekly losses returnig to two prior week’s levels.
Corn prices fell 7 euros on Friday, to close at 237 euros per tonne on the maturity of January shadding 2,87% for the week.
In rapeseed, February futures set another record high for Euronext at 779.75 euros a tonne, before easing back to 754 €/t at the end of the week, however settling up around 0.3% higher for the week.
Jan-21 UK feed wheat futures fell £4.25 from prior week, closing at £220.25/t.
Meantime, as of December 30, FOB prices in US dollar for French wheat with 11.5% protein and Jan. delivery, were at $ 321/mt, down $11/mt from prior week.
French durum wheat, FOB Port la Nouvelle not quoted past week.
French durum wheat – basis La Pallice, quoted $522.92/mt, down $9.5 from prior week.
Spanish durum wheat Sevilla (DepSilo), not quoted past week.
Italian durum wheat Bologna (Delivered to first customer), valued at $600.23/mt, up $ 2,11 from prior week.
German wheat (Depsilo) with 12.5 pro not quoted past week.
Baltic wheat (Delivery First) not quoted past week.
Corn delivered Bordeaux Spot – July 2021 basis was at $279.65 per tonne, down $1.27 from prior week.
FOB Rhin Spot – July 2021 basis was at $287.61 per tonne, down $1.25 week on week.
Feed barley delivered Rouen – July 2021 basis was at 288.75 $/t, down $11.44.
Malting barley FOB Creil Spot – July 2021 basis was at $426.30 per tonne, up $1.5/t from prior week.
Rapessed FOB Moselle Spot – Flat – 2021 harvest was at 861.69 $/ton, down $2.62 compared to prior week.
Standard sunseed delivered St Nazaire Spot – Flat – 2021 harvest was down 8.87$ from prior week at $699.13 per tonne.
(EUR/USD=> US$1.1368).
From the Middle Kingdom, Chinese Dalian Corn Prices opened with +3% gains, but spent the remainder of the Friday session giving it back.
Jan closed 3 yuan/MT below last Thursday to go into the weekend, and March was a net 2 yuan weaker from close to close at 2,637/MT (~ $10.53/bu).
China’s import quality Dalian No2 Soybean Prices were weaker on Friday, down by 17 yuan/MT (~ 6 cents/bu) to 4,152 (~ $17.74/bu).
Author: Sandro F. Puglisi
