Farm markets close higher
DES MOINES, Iowa (Agriculture.com)--As released, the USDA Crop Production and Grain Stocks Reports data helped the CME Group corn and wheat markets close higher, soybeans followed Friday.
The March futures corn contract settled 11 cents higher at $7.10. The March soybean futures contract finished 7 cents higher at $14.24. March wheat futures settled 9 cents higher at $7.54 per bushel. The Jan. soyoil futures contract closed $0.51 lower at $48.88. The Jan. soymeal futures settled $2.70 per short ton lower at $406.00.
In the outside markets, the NYMEX crude oil is $0.22 per barrel lower, the dollar is lower and the Dow Jones Industrials are 7 points higher.
Tim Hannagan, Alpari (U.S.) LLC senior grain analyst, says that there was something for everyone in today's USDA report.
"The production numbers for corn and beans all came in over pre-report estimates and the November report, while quarterly stocks under estimates," Hannagan says.
Since ending stocks reserves are the lasting fundamental, traders traded those first with big report release rallies.
"Then profit taking pulled everything off the highs on the production figures," he says.
At mid-session, all three grains reflected the ending stocks carry over. The 45 million bushel drop in corn ending stocks had us up 20 cents. The 38 million bushel drop in wheat ending stocks had us up 21 cents while the 5 million bushel increase for beans had us down 10 cents. "There's nothing in the report that suggests a near term low is in. They (traders) should come in Monday saying the report was priced in Friday and go back to the business on hand. We should return to tradin a weakening demand pace and good South American weather for crops. This should fire up selling, again. "