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Soybeans finish up 40¢

05/28/2013 @ 8:37am

DES MOINES, Iowa (Agriculture.com)--Flooding and late planting sparked the CME Group soybean market to settle sharply higher, pushing up corn too Tuesday.

The July futures corn contract settled 9 cents higher at $6.66. New-crop Dec. futures finished 14 cents higher at $5.51. The July soybean futures contract ended 33 cents higher at $15.09, new-crop Nov. soybeans settled 40 cents higher at $12.88. July wheat futures closed 4 cents lower at $6.93 per bushel. The July soymeal futures finished $14.10 per short ton higher at $442.30. The July soyoil futures settled $0.30 higher at $49.54.
In the outside markets, the NYMEX crude oil is $1.14 per barrel higher, the dollar is higher and the Dow Jones Industrials are 87 points higher.

Pete Meyer, PIRA Senior Director of Agricultural Commodities, says the late plantings and flooding are the obvious major concerns at the moment for corn acreage.  

"With many in Iowa and Minnesota facing their final corn planting date at the end of this week, the reality of the situation is sinking in. I believe that we’ve already lost three million acres of corn, not to mention the affect this flooding is having on the loss of nitrogen from the soil," Meyer says.  

Nitrogen that runs through drainage tile helps no one, he says.  

"The final issue is the size of the replant acreage.  With this week’s weather looking wet once again, it’s a good bet that as many as 15 million acres of corn could be planted in June, if they’re planted at all.  No one wants to see their corn pollinate in early August," Meyer says.

Mike North, First Capitol Ag, says the market is experiencing fireworks. "Obviously the 9:30 push gave us another exciting move in soybeans.  With flash flood warnings in Iowa, many have taken on a defeatist attitude toward corn plantings and are already beginning to develop the same for soybeans.  

However, the guess on this afternoon's USDA Crop Progress planting rate puts us near the 85% mark. "That is very close to the 5-year average," North says.  

People have still not shaken off the late planting mentality.  Weather will be watched closely this week as will fund activity.  There is renewed optimism that the recent fireworks in grains coupled with growing nervousness in equities could bring more money into the trade.  That would certainly allow the market to support a rally regardless of fundamental perception," North says.

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