Soybeans Close 18¢ Higher
DES MOINES, Iowa (Agriculture.com)--The CME Group corn and soybean markets rallied, after cold weather concerns for next week took center stage Tuesday.
The May corn futures contract closed 7 3/4 cents higher at $5.07. The Dec. corn futures settled 7 1/2 cents higher at $5.13. The May soybean futures contract ended 18 cents higher at $14.82. The Nov. soybean futures closed 9 cents higher at $12.17. May wheat futures finished 4 3/4 cents higher at $6.81 per bushel. The May soymeal futures contract finished $3.80 per short ton higher at $478.10. The May soyoil futures closed $0.68 higher at $42.11.
In the outside markets, the Brent crude oil is $1.75 per barrel higher, the dollar is lower and the Dow Jones Industrials are 74 points lower.
Jack Scoville, PRICE Futures Group vice-president, says the markets are supported by buying today in soybeans.
"This is related to ideas that USDA will need to cut ending stocks in its April USDA Supply/Demand report tomorrow and worries about extreme demand. I am not sure they will get this, but the market is looking for it," Scoville says.
He adds, "I think USDA leaves things unchanged as the soybean imports are going to come in at a decent clip now to New Orleans and Wilmington, NC."
For corn, the trade is as much about weather as anything, he says.
"It's going to cool down again, next week, and the weather not allowing for much dry down. But crop progress is really pretty good in the South. So, I think the buyers are a bit early," Scoville says.
Plus, China will allow imports of Brazilian corn now, not seen as positive for U.S. corn demand.
"Both corn and soybean markets are supported by the el nino talk going around too. The weather pattern, if realized, should not hurt U.S. production potential per se, but it will affect production around the world," Scoville says.
Wheat is rallying on the state reports and the el nino talk as well. NASS's state crop conditions report, released Monday, showed a little more deterioration.
"My speculative customers are buying, my farmers and industry quiet right now," he says.