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Corn closes 'limit up' 40¢

Updated: 06/25/2012 @ 2:29pm

DES MOINES, Iowa (Agriculture.com)--With dry weather causing huge crop concerns, the CME Group corn market closed up the daily high trade limit of 40 cents, while soybeans finished sharply higher Monday.

At the closeThe July corn futures settled up the 'daily limit' of 40 cents at $6.31, while the Dec. contract settled at the daily 'limit up' (40¢) at $5.94. The July soybean contract ended 40 1/2 cents higher $14.83, while the Nov. 2012 contract ended 50 1/2 cents higher at $14.26. The July wheat futures closed 48 3/4 cents higher at $7.22. July soyoil futures closed $1.43 higher at $51.17. The July soymeal futures finished $9.70 higher at $431.70. 
In the outside markets, the NYMEX crude oil is $0.58 per barrel lower, the dollar is nearly unchanged and the Dow Jones Industrials are 138 points lower.

Keep in mind that since we closed 'limit up' today, tonight's limits will be expanded to 60¢. That is wild to think we can move this market $1.00 from 9:30 this morning to 5pm tonight.

Jack Scoville, PRICE Futures Group vice-president, says today's market is trading weather. 

China bought some beans Monday and that all helps, Scoville says. Plus, there is a chance for bullish data on Friday for corn and beans, corn stocks lower than what USDA is implying and planted area in beans not up as much as had been talked. 

"But, overall this is weather.  We went home with a cool, if somewhat dry forecast, but now we are hot and dry and we are getting into a big time weather market.  Should be fun!  Seen specs on both sides, some buying in and some booking profits on longs.  No farmer action, unless they are covering shorts, and the commercials not doing much either.  Basically, not a lot of selling interest around.  Outside markets are negative to grains prices. But, with the weather the way it is we do not care," Scoville says.

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