Corn finishes 'limit up'
DES MOINES, Iowa (Agriculture.com)--A tighter stocks outlook from the USDA pushed the CME Group corn to its 40 cent daily exchange trading limit Friday.
The Dec. futures corn contract closed 'limit up' 40 cents higher at $7.56. Nov. soybean futures contract settled 27 cents higher at $15.98. Dec. wheat futures ended 44 cents higher at $8.99 per bushel. The Dec. soyoil futures contract closed $0.03 lower at $52.55. The Dec. soymeal futures contract closed $13.60 per short ton higher at $487.50.
In the outside markets, the NYMEX crude oil is $0.24 per barrel higher, the dollar is higher and the Dow Jones Industrials are 49 points lower.
Alan Brugler, president of Brugler Marketing & Management LLC, says the corn rally is pretty much due to the sharp reversal in corn stocks. "USDA hiked the estimate in September and will have to reverse it in October. The market was bearish heading into the report, oversold technically, and thus caught leaning the wrong way," Brugler says.
Soybeans are getting a lift from Chinese buying interest at this price level, he says.
"And also, soybeans are getting support because soybean meal is going up as the cost of the substitutes (corn and feed wheat and DDG) goes up today. That let's the crushers pay up for the beans."