Exports shoot soybeans up 15¢
DES MOINES, Iowa (Agriculture.com)--After fresh exports were announced, the CME Group soybean market used the rally to close double-digits higher Monday.
The March corn futures contract settled 1 3/4 cents higher at $4.34. The March soybean futures contract settled 15 cents higher at $12.94. March wheat futures ended 4 1/2 cents higher at $5.73 per bushel. The March soymeal futures contract finished $8.30 per short ton higher at $421.90. The March soyoil futures ended $0.39 lower at $32.84.
In the outside markets, the Brent crude oil is $0.88 per barrel lower, the dollar is higher and the Dow Jones Industrials are 130 points lower.
Mike North, Senior Risk Management Advisor of First Capitol Ag, says the story is about soybeans correcting.
"Soybeans are doing what soybeans do best…move," North says. The market had seen a large sell off in recent days. They are simply recovering. A good export sale didn’t hurt either. Corn is still catching its breath from Friday."
Jack Scoville, PRICE Futures Group vice-president, says the soybean market were lower overnight, but the news of sales to unknown destinations, probably China, really turned this thing around.
"It is the only news that I know of that could do this. Yield reports are very high in Brazil in both MT and now PR, so that is bearish. My guys think maybe 93.0 million tons of production potential for the country and feel it could go higher. Wow, what a crop," Scoville says.
Scoville adds, "So, one has to wonder about how far we can go on this, but the demand just does not quit for us."
Corn had no real follow through from last week, kind of too bad, Scoville says. "Even though the reports were bullish to expectations, it is not like we are going to run out of corn. Not sure why the wheat strength, but it was beaten up pretty hard last Friday. The market is just consolidating, I think," he says