Soybean market ends strong
DES MOINES, Iowa (Agriculture.com)--Finishing sharply higher, soybeans took the lead Wednesday on the CME Group floor.
The March corn futures closed 3 cents higher at $6.42. The March soybean contract ended 16 1/4 cents higher at $12.15 1/4. The March wheat futures settled 8 1/4 cents higher at $6.74 1/4. The March soymeal futures settled $3.00 per short ton higher at $322.30. The March soyoil futures settled $0.31 higher $51.18.
In the outside markets, the NYMEX crude oil is $0.85 per barrel lower, the dollar is lower and the Dow Jones Industrials are up 126 points.
Jack Scoville, PRICE Futures Group vice president, says the rally occurred as a result of Europe and Russia's cold weather and US Dollar weakness.
"I think some corn must have sold on the rally, as that is the market that has pulled back the most. In Wheat, the market knows there is still lots of wheat out there, even with the losses near the Black Sea. So, upside is probably pretty limited. Soybeans are seeing better weather in South America but there has been some China demand talk," Scoville says.
Overall, the demand is weak. So, that gives bulls pause in chasing this thing," he says.
Tom White, FuturesRoad.net analyst and CME Group floor corn pit trader, says the corn market is eyeing rally towards $7.00.
"For corn, technicals show a daily trendline price coming in at $6.40 1/2 per bushel. We opened strong with a high of $6.50, but shortly after market retreated to test that trendline. It is my belief that as long as we close above that trendline today provides us a bias to the long side with objectives just above $7.00," White says.