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Corn closes 'limit' up

Updated: 04/29/2013 @ 2:06pm

DES MOINES, Iowa (Agriculture.com)--U.S. corn planting delays have pushed the CME Group corn market to its daily 'limit' up of 40 cents Monday. 

The July futures corn contract settled up the daily 'limit' 40 cents at $6.59. The July soybean futures contract ended 27 cents higher at $14.08. July wheat futures closed 24 cents higher at $7.16 per bushel. The July soymeal futures finished  $11.70 per short ton higher at $416.40. The July soyoil futures ended $0.03 lower at $49.51.
In the outside markets, the NYMEX crude oil is $1.50 per barrel higher, the dollar is lower and the Dow Jones Industrials are 122 points higher.

Jack Scoville, PRICE Futures Group vice-president, says it's a full-fledged weather market.  

"Corn has been the leader, with very little corn in the ground and little chance of making much progress this week and maybe next week too.  We are having a couple of real nice days, but then back to the cold and wet stuff we have seen for like weeks," Scoville says.  

Scoville adds, "So, corn is on fire and soybeans are keeping pace now after a slow start.  Wheat is higher on the tour that should show losses this week.  Corn is running the show here today and that is a delayed planting thing. Lots of spec buying seen today, some liquidation being seen now from specs. Farmers mostly hanging quiet," Scoville says.

Dustin Johnson, E-Hedger market analyst, says that the market is experiencing large quantities of purchases of the short-dated new-crop calls.

"I think this is a clear "weather bet/hedge". We also just had a huge exit of corn longs by the managed money over the last couple of weeks.  Now that they are basically neutral in their net corn positions we are actually getting a real spring planting delay. It is very clear in the corn - bean ratio that this is all about the forecast.  Many are associating this to 2008 which we feel is still too soon.  We will be watching the morning and midday weather updates for direction," Johnson says.

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