Soybeans, corn end higher
DES MOINES, iowa (Agriculture.com)--The CME Group soybean market pulled up corn and wheat prices Wednesday.
The March futures corn contract closed up 5 cents at $7.00. The March soybean futures contract settled 12 cents higher at $14.82, but traded as high as $14.92. March wheat futures ended 6 cents higher at $7.45 per bushel. The March soyoil futures contract finished $0.46 lower at $52.07. The March soymeal futures closed $8.30 per short ton higher at $433.60.
In the outside markets, the NYMEX crude oil is $1.99 per barrel lower, the dollar is higher and the Dow Jones Industrials are 102 points lower.
On Wednesday, the Federal Reserve announced that it may have to halt quantitative easing (QE3) measures before the job market picks up. Bond buying may ease. The stock market didn't like to hear it.
Alan Brugler, President of Brugler Marketing & Management LLC, says with some help, soybeans could reach $15.00.
"Soybean resistance is the round number at $15 which stopped the last two rallies. We can go past that, but likely will need either big daily export sales announcements or further dryness problems in Argentina to get us over the hump," Brugler says.
The cash corn market is saying that futures are too cheap to get anything to move, he says. "Ethanol imports are slowing due to higher prices in Brazil, and ethanol is cheap enough vs. gasoline to result in increased blend use. Thus, we would expect daily ethanol production to rise, and stocks might also fall," Brugler says.
Either way leads to more corn use than we were seeing in late January. "Lousy exports are a limiting factor, as is the strong US dollar."