Corn jumps on ethanol demand
DES MOINES, Iowa (Agriculture.com)--Increased ethanol demand pushes up CME Group corn prices Wednesday. Spread trading pushes nearby soybeans lower.
At mid-session, the July futures corn contract is trading 15 cents higher at $6.55. New-crop Dec. futures trade 8 cents higher at $5.28. The July soybean futures contract is 2 cents lower at $14.76, new-crop Nov. soybeans are trading 10 cents higher at $12.31. July wheat futures are trading 11 cents higher at $6.91 per bushel. The July soymeal futures are trading $2.70 per short ton lower at $436.40. The July soyoil futures are trading $0.03 lower at $49.45.
In the outside markets, the NYMEX crude oil is $1.06 per barrel lower, the dollar is higher and the Dow Jones Industrials are 112 points higher.
Tim Hannagan, Walsh Trading Co. senior grain analyst, says unwinding of soybean trading is divorcing new-crop from old-crop contracts, while corn gets support from better ethanol demand.
"We're seeing unwinding of the long July short Nov. bean spread, after hitting major resistance at 14.85. The spread looks to move higher in the future, possibly to 3.00 July over Nov. But, there's a three day holiday coming and traders look to pull profits out. Corn shorts are banking short profits as well. Dec, corn is seeing some buying, as traders seasonally see the bearish planting trend turn to growing season buying, after the Memorial Day holiday."