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Soy, wheat close higher

Updated: 06/03/2011 @ 2:19pm

CHICAGO, Illinois (Agriculture.com)--The CME Group farm markets finished mostly higher Friday. Corn prices were pulled down by better planting prospects in the eastern Corn Belt. 

The July corn futures settled 14 1/4 cents lower at $7.52. The July soybean contract ended 5 cents higher at $14.12. The July wheat futures closed 2 1/2 cents higher at $7.72 1/4. The July soybean meal futures settled $3.70 per short ton higher at $369.70. July soyoil settled $0.21 lower at $58.70.

In the outside markets, the NYMEX crude oil is $0.01 per barrel higher, the dollar is lower and the Dow Jones Industrials are down 105 points. The stock market had its worse day in two months.

Traders are taking down the crop size each day that planting is delayed," John Roach, Roach Ag president, noted in a letter to customers Friday. "New crop corn pushed to a new high yesterday with new crop soybeans nearly there. Traders are dialing in smaller acres and uncertain yields on both crops."

A CME Group floor trader, requesting anonymity, says news out of China and the outside markets helped soybeans be the floor leader Friday.

"The Chinese lift price controls on soy oil, after finishing releasing oil and soybean stocks. This is supportive for the soybean complex. Plus, new money helped support trade Friday. Energy rebounded, after weak U.S. unemployment number, helping support trade," the floor trader says. 

Corn started above the level for importers to buy. Plus, the corn price is too high for ethanol producers, with ethanol margin calculations in the red, he says. "So, I don’t disagree with profit-taking or unwinding of corn-wheat corn-bean spread contract positions. Remember, wheat and corn prices were nearly even last week." 

The floor trader adds, "I think the eastern Corn Belt farmers are getting corn planted this weekend. Overall, corn needs to stay here at rationing price. Soybeans will most likely wait to see Planting Progress Report Monday or perhaps wait for the June 9 Acreage Report, though I am a net seller of beans above $14.00."

Luisa Longo, a CME Group floor trader with Trademaven, Inc., says the market is awash in fundamentals to trade. "Better weather for the weekend and weakness in outside markets sparked profit-taking in corn.  Soybeans found support due to fund buying and planting concerns.  Wheat also rallied on the weak dollar and planting concerns." 

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