Soybeans close sharply higher
DES MOINES, Iowa (Agriculture.com)--The CME Group soybean market closed sharply higher, ahead of Friday's USDA August Crop Production and Supply/Demand Reports.
The Dec. futures corn contract settled 7 1/4 cents higher at $8.23 3/4. The Nov. soybean contract settled 50 cents higher at $16.31 1/4. Dec. wheat futures close 13 1/2 cents higher at $9.27 per bushel. The Dec. soymeal futures contract closed $16.90 per short ton higher at $494.60. The Dec. soyoil contract settled $0.81 higher at $53.20.
In the outside markets, the NYMEX crude oil is $0.11 per barrel lower, the dollar is higher and the Dow Jones Industrials are 4 points lower.
Jack Scoville, PRICE Futures Group vice-president, says the soybean rally is based upon the 'shorts' getting scared of an expected bullish USDA Report Friday.
"The 'shorts' have pushed themselves out of those positions. The weekly export sales were not bad, and that helped," Scoville says. Lots of talk of terrible yields on first harvest which is pushing things higher too. But, in the end, people are worried that USDA will show a very low number and they are getting out of the way."
Some farmer-selling is occurring, he says. "And, South American farmer-selling is taking place, on the rally. But, very little selling pressure of any kind, so far today. Some chart-based buying is taking place in the market too," Scoville says.