Farm markets close higher
DES MOINES, Iowa (Agriculture.com)--Short-covering helped the CME Group corn, soybean and wheat markets close higher Monday.
The Dec. futures corn contract settled 11 cents higher at $7.38. Jan. soybean futures contract closed 11 cents higher at $13.94. Dec. wheat futures finished 4 cents higher at $8.57 per bushel. The Dec. soyoil futures contract finished $0.84 higher at $47.89. The Dec. soymeal futures contract ended unchanged per short ton lower at $424.60.
In the outside markets, the NYMEX crude oil is $1.22 per barrel higher, the dollar is lower and the Dow Jones Industrials are 176 points higher.
Tim Hannagan, Alpari (U.S.) LLC senior grain analyst, says two market events normally happen on a holiday-shortened week that also comes at month-end.
"First, we see one big up day, as shorts cover risk and one big down day. Month-end balancing by funds and speculators cover risk. When the market closes Wednesday it doesn’t re-open until Friday at 9:30. Because the markets close Friday at 12:00pm, there are essentially only two hours and thirty minutes of grain trade. Traders have a lot to squeeze in," Hannagan says.
Today's action brought short-covering on two issues, he says. "One, bullish sentiment from Friday's EPA announcement that there would be no change in the current ethanol to fuel mandates. And two, outside markets all were sharply higher pulling up grains on fear of war outbreak in the Middle East," Hannagan says.
Look for Tuesday to reverse and 'longs' take coverage with a choppy two-sided trade Wednesday, he says.