Corn, soybeans end mixed
DES MOINES, Iowa (Agriculture.com)--Profit-taking and cash basis weakening, all kept a lid on the CME Group corn, soybeans and wheat markets Tuesday.
The July futures corn contract settled 3 cents lower at $6.52. New-crop Dec. futures finished 1 cent lower at $5.38. The July soybean futures contract ended 5 cents lower at $14.14, new-crop Nov. soybeans ended 4 cents higher at $12.14. July wheat futures finished 1 cent higher at $7.10 per bushel. The July soymeal futures finished $3.30 per short ton lower at $411.80. The July soyoil futures closed $0.15 higher at $49.76.
In the outside markets, the NYMEX crude oil is $1.16 per barrel lower, the dollar is higher and the Dow Jones Industrials are 76 points higher.
Dustin Johbson, eHedger analyst, says that after a weak start the May contract expiration seems to be supporting the rest of the contracts today.
"Bearspreading is prevalent but that is probably related to the CIF basis down sharply this morning. The July-Nov soybean spread is lower. But, that could just be overcooked to the upside. In my opinion if the bullish story is late planting, I would think November would have a hard time staying supported. But, for some reason, it wants to stay above $12.00. The planting progress report was mostly in-line with expectations, but we are hearing reports of many producers 50-100% planted already and expect a very large jump on next week's report," Johnson says.
Jack Scoville, PRICE Futures Group vice-president, agrees that most of the day's action seems to be on the expiring May contracts. "This has created some pretty big ranges for beans and corn. The question in my mind is will July need to rally to meet May? I think it can do part of that job anyway."
Scoville is learning that basis weakness is occurring in corn country.
"Nothing really moving out there which is ok, it just means that farmers are working the land. Some traders are trying to be bullish new crop corn which I do not think is a good idea in the end. But, charts for December do show the potential to work higher over the next week or two," Scoville says.