Corn Ends Up, Soybeans Lower
DES MOINES, Iowa (Agriculture.com)--Talk of another investment bank exiting commodities aided in pushing the soybean market to a lower close Tuesday.
The July corn futures contract closed 8 1/4 cents higher at $5.02. The Dec. corn futures finished 5 3/4 cents higher at $4.95. The July soybean futures contract finished 16 cents lower at $14.70. The Nov. soybean futures ended 8 cents lower at $12.15. July wheat futures closed 4 cents higher at $6.79 per bushel. The July soymeal futures contract closed $5.80 per short ton lower at $470.30. The July soyoil futures finished $0.28 lower at $42.98. In the outside markets, the Brent crude oil is $1.75 per barrel lower, the dollar is lower and the Dow Jones Industrials are 107 points higher.
Jack Scoville, PRICE Futures Group vice-president, says today's soybean market can be explained by the funds giveth and the funds taketh away.
"The talk is that Barclays is getting out of commodities including grains and oilseeds, and that is part of the pressure. Better weather here too, although corn does not seem to care today. I think corn has been a short lately and that is the reason corn is holding as well as it is. But, corn is getting into a resistance area and I expect it to head back down later this week. The weather is getting better as well, and I think that will become more and more important here. Mexico bought corn to help the nearby hold, too. I think wheat is lower on the forecasts for more precip in the Great Plains over the next couple of days. The crop should be getting much better now. Back to beans, still lots and lots of talk of Chinese buyers with problems financing cargos and trying to cancel and also with lots of problems opening letters of credit. Beans might end up getting ugly here. The funds are huge longs and the market might have to feel selling from them for a while," he says.