Corn ends higher
DES MOINES, Iowa (Agriculture.com)--Ideas of an oversold market and China wheat purchases have combined to help the CME Group corn, soybean and wheat markets finish higher Monday.
The May futures corn contract closed 4 cents higher at $6.33. The May soybean futures contract finished 16 cents higher at $13.78. May wheat futures finished 13 cents higher at $7.12 per bushel. The May soymeal futures closed $1.50 per short ton higher at $393.30. The May soyoil futures ended $0.69 higher at $49.52.
In the outside markets, the NYMEX crude oil is $0.39 per barrel higher, the dollar is lower and the Dow Jones Industrials are 2 points lower.
Jack Scoville, PRICE Futures Group vice president, says that it looks like China bought 1.0 million tons of SRW wheat. "That is a good reason to rally. The market is considering the upcoming USDA Report Wednesday, a recent beating of prices. So, a move higher would not be a shock. I think we are getting some bottom-picking and or short-covering going today," Scoville says.
There is no real news for corn and beans.
"People concerned about U.S. planting delays. But, it is too early to make that a big issue, and in the meantime lots of beneficial precipitation is falling," he says.
I think this rally is mostly about being overdone last week, and the Chinese markets holding better than ours in response to the bird flu.
Wheat is seeing buying. So, there is a lot of support.