Grains close mixed
DES MOINES, Iowa (Agriculture.com)--The CME Group corn, soybean and wheat markets spent most of Monday's session mixed, with the market still digesting South American crop conditions.
After a lower Argentina corn and soybean crop estimate Friday from Informa, the private analyst firm, a Brazilian analyst firm has followed up with lower Brazilian crop estimates, due to drought conditions.
The lower estimates helped soybeans stay higher Monday.
The March corn futures closed 1/4 of a cent lower at $6.44 1/2. The March soybean contract settled 1/2 of a cent higher at $12.33. The March wheat futures settled 7 3/4 cents higher at $6.68 1/2. The March soymeal futures settled $1.10 per short ton lower at $327.50. The March soyoil futures settled $0.51 higher at $52.16.
In the outside markets, the NYMEX crude oil is $0.75 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 29 points.
Jack Scoville, PRICE Futures Group vice president, says the soybean market is up for chart-based reasons, as much as anything else. "Soybeans broke resistance on Friday and seem to want to follow through," Scoville says. Cash markets are holding firm too, as they are for corn, but corn seems to be seeing a little speculative-selling."
The market may be anticipating more South American soybean loss, pushing up beans. But, the South American corn crop damage may already be built into the market, he says.
For wheat the market is considering still cold conditions in the EU. "Plus, some traders may be looking at floods in Australia for reasons to buy," Scoville says.
Cash markets are strong, mostly on no farmer-selling, and not much demand showing to start the week.
Overall, it could be a choppy week, until the reports Thursday, with markets holding pretty well on ideas of less world production, but not able to move much higher due to demand ideas, Scoville says.