Corn, soybeans close higher
DES MOINES, Iowa (Agriculture.com)--On Monday, the CME Group corn, soybean and wheat markets closed stronger.
The March corn futures contract closed 4 cents higher at $4.27. The March soybean futures contract settled 5 1/2 cents higher at $12.76. March wheat futures finished unchanged at $6.05 per bushel. The March soymeal futures contract ended $6.70 per short ton higher at $413.80. The March soyoil futures closed $0.48 lower at $38.12.
In the outside markets, the NYMEX crude oil is $0.48 per barrel lower, the dollar is lower and the Dow Jones Industrials are 7 points lower.
Jack Scoville, PRICE Futures Group vice-president, says the markets are higher due to the weather and index rolling.
"Part of it is the fact that it is very cold out there and logistics are a real mess. Part of it is spec-buying before the index fund roll that starts on Wednesday and should provide some strong buying interest in corn and wheat, anyway," Scoville says.
The market is digesting talk of winterkill for the SRW crop, but most of it should have snow cover and will probably get through alright, he says. "Feed demand for corn should be stronger for the next couple of days, with the cold and very poor feed conversion rates," Scoville says.
The USDA reports, on Friday, are expected to be negative, but wheat and corn especially remain oversold and could rally on short covering into the reports, he says.
"Beans saw less than expected rains in Argentina this weekend. But, overall conditions should still be good," Scoville adds.
Alan Brugler, President of Brugler Marketing & Management LLC, says the soybeans are getting support from demand.