Corn closes higher on buying
DES MOINES, Iowa (Agriculture.com)--The CME Group corn, soybean and wheat markets closed mostly higher, as traders favor being long corn, short soybeans Wednesday.
The March corn futures settled 4 1/2 cents higher at $6.34 1/2. The March soybean contract ended 6 1/2 cents lower at $12.13 1/2. The March wheat futures closed 7 3/4 cents higher at $6.41 1/4. The March soymeal futures finished $2.40 per short ton lower at $321.10. The March soyoil futures closed $0.04 higher $51.39.
In the outside markets, the NYMEX crude oil is $0.72 per barrel higher, the dollar is lower and the Dow Jones Industrials are up 54 points.
Jack Scoville, PRICE Futures Group vice president, says farmer-selling news pressured the market temporarily Wednesday.
"Farmer-selling and more reports of rains for Argentina, kept gains limited early. The rains are supposed to move to southern Brazil today.
As the Federal Reserve announced low interest rates through 2014 Wednesday, that broke the US Dollar and created buying in commodities in general and in grains specifically, Scoville says. "Trade volumes today were on the light side. But, better than they have been overall," Scoville says.
Matt Connelly, an independent CME Group floor trader, says the market is trading cash markets. "Corn is still very strong, exports and ethanol use still good. U.S. carryout/use guesses are coming down," Connelly says.
Although old crop/new crop corn price-spreads show strong inverses as new-crop supply/demand carryout models are very bearish, it's a long time until December, he says.
"The trade still likes long corn, short bean positions, as South America's rains will be more beneficial to soybeans, at this stage," Connelly says.