Soybean and corn prices rose Thursday, along with export sales, reported by USDA.
January soybeans closed up 3 ¾ cents at $9.89 ½, while December corn also went up 3 ½ cents, closing at $3.42
USDA reported corn net sales between of 1.7 MMT for 2016/17, up 35% from the previous week and 47% from the prior 4-week average. Soybean net sales of 1.4 MMT for 2016/17 also increased 51% from the previous week, but were down 23% from the prior 4-week average, USDA said.
Wheat net sales of 598,400 metric tons for delivery in 2016/17 were down 22% from the previous week, but up 11% from the prior 4-week average, the report noted.
The exports beat trade expectations, according to grain market analysts. Analysts had estimated soybean exports of 1.2 MMT to 1.5 MMT, and corn exports between 900,000 to 1.5 MMT, according to the marketing firm Allendale, in McHenry, Ill.
USDA also reported an increase of 114,181 MT in weekly inspected soybean exports of 2.8 MMT, while weekly inspected corn exports fell 311,029 MT to 618,155 MT.
“The soybean market this time of year really turns more into a South American weather market,” says Joe Vaclavik, founder and president of Standard Grain in Chicago, noting that volatility in grain markets has been trending lower for several weeks now.
The corn market level for volatility hit its lowest level since March this week, he says, while soybean and wheat volatility are hovering just above some multi-month lows.
“Low volatility in these markets suggests we may be range-bound,” Vaclavik says.