Closing Market Update- 3/22/21- Soybean Oil Limit Higher, Grains Were Mixed to Lower


May soybean oil closed up its 2.50-cent daily limit at a new contract high of 56.37, continuing to benefit from strong international demand for vegetable oils and the anticipation of a push for more clean energy sources. Other grain contracts were mixed with rain in this week’s U.S. forecast. The big story on Monday is the resurgence of the bean oil market, with the front-month contract reaching limit gains of 2.5 cents. Soybean oil stocks in China are reported to have fallen to a three-year low. Soybeans were mixed while corn was under pressure as no new China sales were announced for the first time in five days. Funds have been sellers of corn and soy, while net buying bean oil on Monday.

Traders are still leery of over-investing in the lean hog contracts and are keeping a far distance from the contracts until they see how the day’s fundamentals close. The cattle market is seeing strong trader interest as last week was strongly supported from a neutral Cattle on Feed report and stronger cash cattle trade.

Farm and Ranch Director Jesse Allen has the latest: