Corn and wheat markets close higher
CHICAGO, Illinois (Agriculture.com)--The CME Group wheat market led corn higher Monday.
The Dec corn futures settled 5 1/2 cents higher at $4.41 1/2. The Nov. soybean contract closed 3 1/2 cents lower at $10.22 1/2. The Dec. wheat futures ended 9 1/2 cents higher at $7.04 1/2. The Dec. soybean meal contract closed $0.80 per short ton lower at $298.70. The Dec soyoil futures contract closed 27 points lower at $40.53.
In the outside markets, the NYMEX crude oil is $0.45 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 77 points.
Jack Scoville, Price Futures Group vice-president, says wheat is the big story today and seems to be rallying on overseas concerns.
"Lots of Russia talk of course, but more concern today about rains in Germany impacting the quality there and also the dry weather in Argentina hurting yield potential there. I know Australia has been dry too, but I understand things are looking a bit better now. However, there is Aussie crop loss talk around," Scoville says.
Corn is also strong, with ideas and reports of poor yields on some initial cuttings, especially east belt, he says. "Some are talking down the Illinois, Indiana, and Ohio yields for corn and is noting that beans in these same states need rain."
Scoville adds, "Beans are the disappointment today given the weather talk and the soybean oil sold to an unknown buyer. I think people just see less need to own beans, no confirmed losses yet and ample ending stocks projections with big potential from South America next year keeping things in check."
Tim Hannagan, PFGBest.com senior analyst, says that After closing at or near the high for the week Friday, on all the grains, for the fifth consecutive Friday, they also traded higher on the Sunday night and on Monday's opening for the fifth consecutive week as well.
"We have seen some profit taking off the initial highs as traders also know that the four prior Monday's saw the grains close near the lows of the day with lower trade Tuesday. This pattern shows funds are in control of the pricing."
Hannagan adds, "No new news around, just the market chewing the old news from concern over European grain production and talk of lower yields out of the southern Delta as well as a record export pace for corn and beans. Month-end could bring on some long liquidation but traders already are talking of buying any dips in prices before the September 10 U.S.D.A. crop report."