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 Septfutures corn contract closed 18 cents higher at $5.51New-crop Deccorn futures closed 21 cents higher at $5.21The Augsoybean futures contract closed 12 cents higher at $14.68, new-crop Novsoybeans ended 24cents higher at $12.76 Septwheat futures finished 14 cents higher at $6.77 per bushelThe Augsoymeal futures ended$6.80 short ton higher at $448.90The Augsoyoil 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, thoughWith 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.