Grain prices close higher
CHICAGO, Illinois (Agriculture.com)--The CME Group grain markets closed higher off of strong demand and lower U.S. corn yields Friday.
The Dec corn futures settled 4 cents higher at $4.36. The Nov. soybean contract ended 11 1/2 cents higher at $10.26. The Dec. wheat futures settled 6 1/2 cents higher at $6.95. The Dec. soymeal futures contract closed $1.20 per short ton higher at $299.50, and Dec. soyoil up 72 points at $40.80.
In the outside markets, the NYMEX crude oil is $1.76 per barrel higher, the dollar is lower, and the Dow Jones Industrials are up 148 points.
Though China announced Friday it's not needing to import more corn, this isn't a China market, one trader says. "It's about stats. How much carryover, acreage, yields, etc. We won't know that until the USDA's Sept. 10 report."
Though it's early, some southern Corn Belt corn yields are being reported as below expectations. The corn was hurt by too much rain, cutting yield and test weight.
Dale Plumer, a grain merchandiser for JBS United in Pittsfield, Illinois, says corn is coming in with damage. "We average 185 bu./acre each year, and this year will be about that, maybe below. We simply had too much rain and then the recent extreme heat caused damage."
Plumer adds, "I think this corn market is probably getting support from these early lower than expected yields."