Soybeans Rally on Fund-Buying
DES MOINES, Iowa (Agriculture.com)--Fund-buying helped the CME Group soybean market close double-digits higher Monday.
The July corn futures contract closed 6 cents lower at $4.77. The Dec. corn futures finished 5 cents lower at $4.75. The July soybean futures contract finished 20 cents higher at $14.85. The Nov. soybean futures ended 17 cents higher at $12.38. July wheat futures finished 1/4 of a cent higher at $6.74 per bushel. The July soymeal futures contract closed $10.30 per short ton higher at $490.50. The July soyoil futures finished $0.33 lower at $40.42. In the outside markets, the NYMEX Brent crude oil is $0.70 per barrel higher, the dollar is lower and the Dow Jones Industrials are 22 points higher.
Jack Scoville, PRICE Futures Group vice-president, says fund-buying is supporting the soybean rally.
"Well, soybeans are sharply higher and it must be fund-buying. Nothing is going on in the cash markets or the news to support the rally. Looks like the funds are buying after no stops hit on new lows for the move."
Spreads are weak. So, one wonders about the staying power of the rally, he says. "But some weird stuff."
Corn and wheat are lower on better weather, he says
"Wheat crops are supposed to get rain in the western Plains, by the end of the week. Plus, corn emerged is looking good, Scoville says. "Little if any news of problems from the cold last week."
The market sees the soybeans getting planted in a big way this week, and that should be negative, but I guess not," he says.