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Corn closes sharply higher

Updated: 06/26/2012 @ 2:27pm

DES MOINES, Iowa (Agriculture.com)--The CME Group corn market used hot/dry weather that is stressing crops to close sharply higher. Soybean prices fell under the pressure of increased rain chances in the next 5-10 days.

The July corn futures settled 14 1/2 cents higher at $6.45 1/2, while the Dec. contract closed 30 cents higher at $6.24. The July soybean contract settled 13 cents lower $14.69 1/2, while the Nov. 2012 contract settled 12 1/2 cents lower at $14.13. The July wheat futures ended 4 3/4 cents higher at $7.29. July soyoil futures closed $0.42 lower at $50.85. The July soymeal futures closed $3.80 lower at $429.00. 
In the outside markets, the NYMEX crude oil is $0.07 per barrel higher, the dollar is higher and the Dow Jones Industrials are 67 points higher.

Joe Bedore, FC Stone's CME Group floor manager, says it's a bit confusing as to why the markets have pulled back Tuesday.

"I don't think the hot/dry weather outlook has changed enough to warrant a turnaround in the market," Bedore says. The market believes the soybean crop has a longer growing season and has time to turnaround. Plus, we have July trading at $14.75, that's not cheap. So, you're seeing some profit-taking."

Looking ahead, the weather remains the focus of the market. "If we don't get rain soon, the Friday USDA Report could take a back seat to weather factors. I don't see a real bullish report anyway. I don't think the government can afford corn over $7, with July in front of us," Bedore says. 

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