Soybeans rally on China news
DES MOINES, Iowa (Agriculture.com)--On Wednesday, the Chinese ag minister's rising estimate of soybeans imported helped the CME Group market close 26 cents higher. Corn and wheat followed.
At the close, the May corn futures contract closed 7 1/4 cents higher at $4.86. The Dec. corn futures finished 5 3/4 cents higher at $4.87. The May soybean futures contract closed 26 1/2 cents higher at $14.18. November soybean futures finished 8 cents higher at $11.84. May wheat futures ended 18 cents higher at $6.92 per bushel. The May soymeal futures contract settled $9.20 per short ton higher at $455.80. The May soyoil futures closed $0.38 higher at $42.27.
In the outside markets, the NYMEX crude oil is $0.29 per barrel higher, the dollar is lower, and the Dow Jones Industrials are 103 points higher.
On Monday, the National Oilseed Processing Association reported record amounts of soybean crushing for the month of February.
Meanwhile, Matt Connelly, CME Group floor trader with Futures International, says China is moving the soybean market. "Beans are higher due to China’s ag minister increasing March soybean imports to 5.25 mmt from 3.49. Also, yesterday's crush number offered no help to the bear camp. Bean market feels like it has to go higher, if there are no cancellations from the Chinese. The soybean carryout is closer to 100 million bushels. We will learn more after the end of month report," he says.
Pete Meyer, PIRA Energy grain analyst says that global strife and tight supplies drive the markets higher. "I think that Putin and Ukraine are the story, and while that should have no effect on soybean prices, the U.S. is out of soybeans, and it’s the easiest thing to buy because of it. There’s fear premium moving back into the market as far as I can see and nothing fundamentally that supports today’s rally. A real input vacuum until March 31," Meyer says.