Soybeans end up 9¢
DES MOINES, Iowa (Agriculture.com)--The CME Group's soybean market finished higher, while wheat and corn closed lower Wednesday.
The March corn futures contract settled 1/4 of a cent lower at $4.61. The May soybean futures contract finished 9 3/4 cents higher at $13.97. May wheat futures ended 12 1/2 cents lower at $6.05 per bushel. The May soymeal futures contract closed unchanged at $453.70. The May soyoil futures finished $0.61 higher at $41.46.
In the outside markets, the NYMEX crude oil is $0.67 per barrel higher, the dollar is higher and the Dow Jones Industrials are 18 points higher.
Jack Scoville, PRICE Futures Group vice-president, says the soybean market may be experiencing a trade war.
"Increased selling interest is showing against $14.00 May futures, both producers and specs selling a bit. Bulls are still talking demand, bears are talking that U.S. crushers are covered," Scoville says.
Meanwhile, Brazil is 30% done with soybean harvest and exporting a dollar or so cheaper than we are, he says.
"There is a lot of debate on China and if they will buy or cancel soybeans. I guess they got a big problem canceling, as they bought CIF and the freight got booked so they are kind of stuck. This means they (China) should go out of the market soon if they have not already. There are still other buyers, but I am sure buying interest is flowing south," Scoville says.
Corn has not much going on today, but is holding together very well and chart-wise looks like it can go to $4.92, basis May futures, he says. Wheat trade is about weather, not quite as cold as forecast and this has pushed prices lower. "Winterkill is not much of an issue. Spec selling I think in the wheat market."