Soybeans end sharply higher
DES MOINES, Iowa (Agriculture.com)--The CME Group's corn, soybean and wheat markets closed higher Wednesday.
The Dec. futures corn contract settled 15 cents higher at $8.04. The Nov. soybean contract closed 36 cents higher at $16.34 3/4. Dec. wheat futures finished 8 cents higher at $8.66 per bushel. The Dec. soymeal futures contract settled $14.40 per short ton higher at $493.50. The Dec. soyoil contract closed $0.28 higher at $53.71.
In the outside markets, the NYMEX crude oil is $0.87 per barrel higher, the dollar is higher and the Dow Jones Industrials are 10 points lower.
Tim Hannagan, Alpari (US) LLC senior grain analyst, says the markets are supported by factors other than weather.
"Crops are considered past their key yield time of development, moving us out of weather's influence on pricing," Hannagan says.
We're moving into a demand-driven market and with ending stocks projected at historic lows, any demand news will be over traded."
Today's rally is coming from rumors China is in buying beans, he says. South America is sold out of beans leaving the U.S. as the sole port of origin in the world to buy from, he says.
"The small crop will restrict this year's exports but harvest is in three weeks and we certainly will meet as much of our foreign commitment as possible," Hannagan says.