Corn, soybeans stage closing rally
DES MOINES, Iowa (Agriculture.com)--As much as they tried, pressuring CME Group farm prices with profit-taking, the traders could not keep a good market down Monday.
Buyers stepped in, on the close, to send the corn, soybean and wheat markets to a higher settlement.
The July corn futures settled 8 3/4 cents higher at $6.34 1/4. The July soybean contract finished 12 cents higher $15.05 1/2. The July wheat futures closed 4 1/2 cents higher at $6.54 1/2. The July soymeal futures finished $7.10 per short ton higher at $435.50 and July soyoil futures ended $0.48 lower at $55.05.
In the outside markets, the NYMEX crude oil is $0.31 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 47 points.
Jack Scoville, PRICE Futures Group vice president, says the markets were lower overnight and early today on the surprise deliveries in soybeans and general spec long liquidation.
"But, the demand still seems to be out there and farmers are busy in the fields and not planting. So, prices are coming back pretty well. The wheat tour has started, and conditions seem to be good. So, ideas are that the tourists will find some nice looking crops out there," Scoville says.
With the crop ratings pretty high, it would not be a real shock to see a good report from the tour, he says.
Specs have been on both sides of the market and the demand for wheat and soybeans would indicate that commercials are probably doing some buying, Scoville says. Export inspections Monday were not too good, but the market did not seem to react much to them.
"It is a little interesting to me that the nearby continues to be as strong as it is, as a lot of the demand from China has been for next year and less for this year. Warm and wet weather in the Midwest this week will give ideas of very good early crop conditions, after the cool week last week," Scoville says.
Alan Brugler, President of Brugler Marketing and Management LLC, in Omaha, Nebraska, agrees that early on in the day's trade, weather and heavy deliveries vs. May soybeans by a UBS client might have chased a few overconfident longs.
"Rain in the eastern Corn Belt his week is generally seen as helpful to crop development for new crop corn. It has been dry over there. Plus, the US dollar is a little stronger today. Month-end asset allocation adjustments call for selling soy complex, buying cattle," Brugler says.