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Corn closes up, soy lower

06/20/2011 @ 2:18pm

DES MOINES, Iowa (Agriculture.com)--Wheat harvest, a weak global economic picture, and crop progress uncertainty kept the CME Group grain and soybean markets relatively quiet Monday, traders say.

The July corn futures settled 1/4 of a cent lower at $7.00 1/2. The July soybean contract ended 2 3/4 cents higher at $13.35 3/4. The July wheat futures settled 13 cents lower at $6.59 1/4. The July soybean meal futures settled $1.00 per short ton higher at $350.00 and July soyoil futures closed $0.10 higher at $56.02.

In the outside markets, the NYMEX crude oil is $0.21per barrel higher, the dollar is higher and the Dow Jones Industrials are up 76 points.

Jack Scoville, PRICE Futures Group vice-president, says today's market was relatively quiet, with mostly some spec buying in the beans and a little in the corn.  "People seem content to blast on the wheat now with harvest on, but the beans got some help from oversold ideas and maybe corn caught in between.  I think people want to see the crop ratings tonight but really want to see things get a little more sure in the world economics before getting too excited about life," Scoville says.

Jason Ward, Northstar Commodity grain analyst, says he corn and soybeans tried to rally on supportive weather (too wet) with heavy rain coming this week. "Those markets tried to draw some support from the fact that the outside markets were very supportive with all livestock markets closing sharply higher (all profitable) using corn at these values," Ward says.

For wheat, it's a market that continues to move lower on fund selling (now short) and harvest progress, Ward says. 

"This weaker wheat market keeps the idea floating around the trade that more corn usage will move to wheat. While I believe some wheat will move into the corn ration, in my view it won’t be enough to significantly impact usage. It is more the fund selling that is pressuring price than the actual wheat being consumed over corn," Ward says.


Meanwhile, hedge fund managers may be playing their long positions close to their vest, with the uncertainty of the European situation, Ward says. "This is trumping any and all positive fundamentals that I mentioned above."


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