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Farm markets close up

Updated: 06/02/2011 @ 2:14pm

CHICAGO, Illinois (Agriculture.com)--The CME Group grain and soybean markets settled higher, holding onto bullish factors such as uncertain planting weather and tight supply concerns Thursday.

The July corn futures settled 8 cents higher at $7.66 1/2. The July soybean contract closed 20 3/4 cents higher at $14.07, a 9-week high. The July wheat futures settled 10 1/2 cents higher at $7.69 3/4. The July soybean meal futures settled $5.30 per short ton higher at $366.00. July soyoil ended $0.48 higher at $58.91.

In the outside markets, the NYMEX crude oil is $0.29 per barrel higher, the dollar is lower and the Dow Jones Industrials are down 2 points.

Joe Bedore, FC Stone's CME Group trading floor manager, says that questions remain on whether Russia exports a huge amount of wheat or not, after it lifts its grain export ban July 1.

"Plus, because of its feed use, it's believed that Russia's wheat entering the export market is negative towards the corn market. However, rumors are spreading today, that Russia's wheat has milling quality. Therefore, it is no longer a negative for corn prices. So, you're seeing corn prices rally," Bedore says. 

In addition, the trade is analyzing Wednesday's U.S. corn acreage estimate of 87.0 million, released by The Linn Group, a private forecaster, Bedore says. 

"If that number is realized, that equates into a 13.1 billion bushel corn crop. When you take off the estimated 7% of silage and other corn usage from that 13.1 billion bushel estimate, you reach what equates to an 81.0 million harvested acreage crop. Well, the USDA 2011-12 corn demand estimate is 13.35 billion bushels. That is friendly for the corn market," Bedore says.

For soybeans, the only thing traders can figure out is that complex is following the 'outside' markets. China is selling 'puts' and that is friendly to the market. Some wonder if China's stocks are tight.

Looking at tomorrow's USDA Weekly Export Sales, no real surprise is expected, Bedore says. "Recent weeks have not been barn burners. Why should we expect more demand tomorrow," he says. 


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