Farm markets end sharply higher
DES MOINES, Iowa (Agriculture.com)--With short-covering and unfavorable weather talk, the CME Group corn, soybean and wheat markets settled sharply higher Tuesday.
The Sept. futures corn contract closed 18 cents higher at $5.51. New-crop Dec. corn futures closed 21 cents higher at $5.21. The Aug. soybean futures contract closed 12 cents higher at $14.68, new-crop Nov. soybeans ended 24cents higher at $12.76. Sept. wheat futures finished 14 cents higher at $6.77 per bushel. The Aug. soymeal futures ended$6.80 short ton higher at $448.90. The Aug. soyoil futures settled $0.06 higher at $47.02.
In the outside markets, the NYMEX crude oil is $0.74 per barrel higher, the dollar is higher and the Dow Jones Industrials are 75 points higher.
Dustin Johnson, eHedger grain analyst, says the rally could be short-lived.
"The large spec positions just got short last week and the dryness west of the Mississippi probably have a few starting to short-cover," Johnson. Also, the trade is hearing some concern about shallow roots from the wet spring, he says.
"We don't think there is much reason to believe this rally will continue without a larger weather issue, though. With pollination pushed back to the end of July, for a lot of areas, we will just have to keep watching the extended forecast to see if we get those rains. We want to sell December corn between $5.10 and $5.20, for those who need to get caught up with hedging," Johnson says.