Corn, soybean rally continues
DES MOINES, Iowa (Agriculture.com)--Demand and crop-weather concerns keep the CME Group corn, soybean and wheat markets in positive territory Monday.
At mid-session, the Dec. futures corn contract is trading 3 3/4 cents higher at $7.49. Jan. soybean futures contract is trading 5 cents higher at $14.24. March wheat futures are trading 4 cents higher at $8.65 per bushel. The Jan. soyoil futures contract is trading $0.28 higher at $49.60. The Jan. soymeal futures contract is trading $1.90 per short ton higher at $425.30.
In the outside markets, the NYMEX crude oil is $1.22 per barrel higher, the dollar is lower and the Dow Jones Industrials are 76 points lower.
Jack Scoville, PRICE Futures Group vice-president, says that it seems today's rally is based on demand ideas and also the weather here in the US.
"Wheat and corn export prices are now getting pretty competitive with those around the world. As a result, we saw better demand for US corn and wheat last week and this could spill into the week as well," Scoville says.
For the soybean complex, the trade is eyeing the soybean oil sales to 'unknown' buyer, probably India and/or China, he says.
"There is talk that export demand for soybean oil is already higher than what USDA has put out on the World Agriculture Supply/Demand Estimate and that it will need to go higher and ending stocks will need to go down," Scoville says.
Weather looks ok in South America for now, but cold here in the Midwest.
"Because it is warm in the Great Plains, the wheat out there is in trouble. So, all in all, l see some stuff that supports prices out there. But, nothing big enough to send prices much higher. In all, people seem generally to be looking to buy if possible," Scoville says.