Home / Markets / Markets Analysis / Corn market / Soybeans close up 25¢ up

Soybeans close up 25¢ up

07/15/2013 @ 8:36am

DES MOINES, Iowa (Agriculture.com)--The CME Group old-crop soybean market closed double-digit higher on tight supply concerns, while corn ended lower Monday.

The Sept. futures corn contract closed 9 cents lower at $5.36. New-crop Dec. corn futures finish 6 cents lower at $5.03. The Aug. soybean futures contract ended 25 cents higher at $14.53, new-crop Nov. soybeans closed 6 cents higher at $12.63. Sept. wheat futures finished 11 cents lower at $6.69 per bushel. The Aug. soymeal futures closed $8.60 short ton higher at $451.50. The Dec. soyoil futures ended $0.47 lower at $45.28.

In the outside markets, the NYMEX crude oil is $0.15 per barrel higher, the dollar is lower and the Dow Jones Industrials are 30 points higher.

Jack Scoville, PRICE Futures Group vice president, says tight supplies drive soybeans, harvest hurts wheat.

"I think Wheat is lower on the good harvest progress that looks to be made in the Midwest this week. Plus, the rains in the Great Plains will add to soil moisture and not hurt harvest progress," Scoville says. 

There is some selling after the big sales last week, too, he says. "There are no new sales, so far today.  

World prices are still above U.S. prices for everything, he says.  

"Speculators appear to be selling. My commercial and producer-side customer business is dead today.  Soybeans are led by the August contract which is related to the tight supply situation. And, I think it (August contract) is bringing the new crop along," Scoville says.

Peter Meyer, PIRA Energy Group Senior Director of Agricultural Commodities, says the speculative shorts, which have a record position, are in control of the corn market.  

"The late July forecast, with its non-threatening temperatures, is perceived by them to be non-threatening to pollination.  Fact is that there’s a lot of dryness still out there and even some of the wettest areas from this past spring could use a drink, as root development has been shallow," Meyer says.  

End-users are on the sidelines though commercial entities have been covering their short position at the same speed that the funds get shorter, Meyer says.  

"Looks like the “smart money” thinks there’s still a 14 billion crop out there.  I have my doubts and furthermore wonder where all the sub-$5.00 selling will come from to get the specs out of their shorts," Meyer says.

CancelPost Comment

Corn, Soybeans Ended Lower Thursday By: 03/26/2015 @ 9:05am DES MOINES, Iowa (Agriculture.com)—On Thursday, the CME Group corn, soybean and wheat markets…

Corn, Soybean, Wheat Markets Seen Rising… By: 03/26/2015 @ 6:35am DES MOINES, Iowa (Agriculture.com)-- On Thursday, the CME Group's corn, soybean and wheat…

Corn Closes Slightly Higher Wednesday By: 03/25/2015 @ 8:40am DES MOINES, Iowa (Agriculture.com)— After starting lower then turning slightly higher, the CME…

This container should display a .swf file. If not, you may need to upgrade your Flash player.
Planter tips: Seeds