Corn ends stronger
DES MOINES, Iowa (Agriculture.com)--The CME Group corn market settled stronger, while soybean prices ended lower Monday.
The July futures corn contract settled 13 cents higher at $6.68. New-crop Dec. corn futures finished 5 cents higher at $5.38. The July soybean futures contract closed 4 cents lower at $15.12, new-crop Nov. soybeans ended 12 cents lower at $12.85. July wheat futures finished 1 cent lower at $6.80 per bushel. The July soymeal futures closed $1.60 per short ton lower at $449.10. The July soyoil futures settled $0.36 higher at $48.84.
In the outside markets, the NYMEX crude oil is $0.02 per barrel lower, the dollar is higher and the Dow Jones Industrials are 58 points higher.
Jack Scoville, PRICE Futures Group vice-president, says the weather is pushing the back-months down for sure.
"Old crop months are supported by tight supplies, and I am wondering if some forecasts for colder weather in Brazil, late this week, is supporting corn and wheat in general," Scoville says.
He adds, "Otherwise I can find no reason for new crop to rally or for heat to rally."
Today is not a huge volume session but there is business here today, he says.
"There are some spec and some hedge activity, as some farmers are selling a bit of new crop. It seems quiet down in South America with some talking about the Argentine strike that could hurt corn and soybean exports for a limited time. I think people are making a deal out of it trying to get a rally going. But, with the weather a lot better, I think rallies will be hard to hold in new crop months," Scoville says.
Pete Meyer, PIRA Energy Group grain analyst, says that he is not surprised that corn is holding up pretty well against beans.
"I believe soybeans are over-priced. Funds are too long soybeans and soy meal, this early in the growing season, in my opinion. July contracts in both corn and soybeans should get interesting with the Index rolls complete. Another contract month with no deliveries given the high basis. I would not want to be short in the front months until after the July expires," Meyer says.