Soybeans end on positive note
DES MOINES, Iowa (Agriculture.com)--Despite a broad-based commodities sell-off, the CME Group soybean market used demand to finish higher Tuesday.
The December futures corn contract closed 5 cents lower at $7.56 1/4. November soybean futures contract ended 6 3/4 cents higher at $15.53. December wheat futures finished 9 1/2 cents lower at $8.68 per bushel. The December soyoil futures contract finished 34 cents lower at $51.32. The December soymeal futures contract settled $5.20 per short ton higher at $476.20.
In the outside markets, the NYMEX crude oil is 43 cents per barrel lower, the dollar is higher, and the Dow Jones Industrials are 207 points lower.
Joe Bedore, FC Stone's CME Group floor manager, says the markets are in a range-bound trading area but trending lower.
"South America's weather is not threatening. South America's bean acres seem to be going up and not down when you hear a new estimate come out. So, this is creating a bear market for soybeans," Bedore says.
In the past month, the soybean futures market has dropped 5 1/2%. "We're more apt to break a dollar before we add a dollar. I think we'll reach $14.00 per bushel before we reach $16.00," Bedore says.
For corn, South America's crop is still $30 per ton cheaper than the U.S. corn price. "We haven't had any significant business in corn exports for a long time. It's discouraging. And, here on the floor, today is the first day in two weeks that the corn trade volume is higher than soybean volume," he says.
With corn prices able to record a .30% of a percent higher range in the past month, many ask what is keeping the market up? "No farmer-selling is what is price supportive. But, there certainly is no interest on the world market," Bedore says.
Tim Hannagan, Alpari LLC (U.S.) senior grain analyst, says that with harvest and U.S. weather no longer a pricing story, the farm markets turn to outside market influence for daily direction.