Corn, soy prices finish higher
CHICAGO, Illinois (Agriculture.com)--The CME Group corn and soybean markets fought back to finish strong, after starting weaker Wednesday. Wheat prices remained under world supply pressures.
The July corn futures settled 11 cents higher at $7.58 1/2. The July soybean contract closed 10 1/4 cents higher at $13.86 1/4. The July wheat futures ended 23 cents lower at $7.59 1/4. The July soybean meal futures settled $5.40 per short ton higher at $360.70. July soyoil settled $0.06 higher at $58.43.
In the outside markets, the NYMEX crude oil is $2.42 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 223 points.
"There is still an import margin into China for corn in new crop. Importers can pay up to $6.90 per bushel, by my calculation, and turn a profit. Plus, wheat in the U.S. has broken enough to be a feed equivalent in a lot of locations. So, I am not really bearish here" a CME Group floor trader, requesting anonymity says.
Meanwhile, the corn and soybean markets are getting help from the uncertainty of the U.S. planting season. The trade still fears declines in yields and acreage, in a year of tight supplies.
"On balance, we judge the prospective supply situation as one that currently appears to be trending toward increasing tightness rather than an outcome that favors a more abundant supply of grains relative to demand in the year ahead," Mark McMinimy, market analyst at MF Global's Washington Research Group, says in a note to customers Wednesday.
McMinimy says this tighter stocks scenario could give long-lasting support to farm markets. "This underscores our view that prices of these crops are likely to continue to trade within exceptionally high ranges for at least two harvest cycles and very possibly beyond, which bodes positively for the high-flying crop sector remaining buoyant for an extended period."