Corn ends higher
DES MOINES, Iowa (Agriculture.com)--With the USDA's April Supply/Demand Report tightening U.S. corn stocks, as of Sept. 1, the CME Group market ended higher Wednesday.
The May futures corn contract settled 5 cents higher at $6.49. The May soybean futures contract closed 2 cents lower at $13.92. The May wheat futures settled 12 cents lower at $6.96 per bushel. The May soymeal futures finished $1.90 per short ton higher at $392.00. The May soyoil futures finished $0.05 higher at $50.03.
In the outside markets, the NYMEX crude oil is $0.12 per barrel lower, the dollar is higher and the Dow Jones Industrials are 142 points higher. The S&P has hit its highest level ever Wednesday.
Tim Hannagan, Alpari (U.S.) LLC senior grain analyst, says since the report comes out during pit trading hours, it's all about the knee-jerk reaction to the numbers.
"The market traded the numbers both ways. The corn ending stocks number was lower than expected. So, short-held positions expecting a higher number began buying back their shorts and a sharp rally occurred," Hannagan says.
Hannagan added, "But, since the ending stocks number was higher than last month's, new sellers sold the rally pushing corn down on the day, in the first 10 minutes of the report. The same happened for beans and wheat."