Soybeans finish strong
DES MOINES, Iowa (Agriculture.com)--Despite finishing slightly higher, the CME Group corn market disappoints considering very late planting in the U.S., analysts say.
The July futures corn contract settled 3 cents higher at $6.39. New-crop Dec. futures finished 1 cent higher at $5.39. The July soybean futures contract ended 13 cents higher at $13.82, new-crop Nov. soybeans finished 7 cents higher at $12.14. July wheat futures finished 6 cents higher at $7.09 per bushel. The July soymeal futures ended $2.10 per short ton higher at $403.30. The July soyoil futures closed $0.38 higher at $49.14.
In the outside markets, the NYMEX crude oil is $0.64 per barrel lower, the dollar is lower and the Dow Jones Industrials are 69 points higher.
Peter Meyer, PIRA Energy Group senior director of agricultural commodities, says that it's really hard to draw much from today’s action, except to say that the market obviously has no fear of late corn planting at this point.
"At 12% planted and no market reaction, I have to wonder what it will take to get a rally going. The action in corn is very disappointing. There’s still plenty of time to get the crop in. But, in my estimation, only 30% will be planted by May 15th. After that, the remaining 70% will be subject to yield loss. Market doesn’t seem to care," Meyer says.
Regarding soybeans, Meyer is bearish new crop and will use this rally to get short, he days. "As far as old crop is concerned, it’s pretty obvious there are very little, if any, old crop beans in the US. And the Brazilians have been slow to meet other demand. Don’t see much of a trade there," Meyer says.
Ken Smithmier, The Hightower Report analyst, says the market brushed aside the slow planting pace and is looking ahead to a more favorable 6-10 day outlook for planting progress.
"There also seems to be a few more June weather outlooks floating around that suggest cooler temperatures as compared with year ago levels. There might be some directional bias to the downside because of those forecasts," Smithmier says.
The outside markets aren’t helping with metal and energy markets failing to extend upside gains, he says. "Plus, the downside move in the CRB Index continues to suggest negative commodity sentiment is here to stay, at least for the short term," he says.