Soybeans rally on short-covering
DES MOINES, Iowa (Agriculture.com)--The CME Group soybean market used short-covering to close higher Tuesday.
The Dec. corn futures contract closed 4 1/2 cents lower at $4.48. The Nov. soybean futures contract settled 4 3/4 cents higher at $13.12. Dec. wheat futures ended 4 3/4 cents higher at $6.58 per bushel. The Dec. soymeal futures closed $3.10 per short ton higher at $412.30. The Dec. soyoil futures finished $0.15 lower at $42.09.
In the outside markets, the NYMEX crude oil is $0.73 per barrel lower, the dollar is higher, and the Dow Jones Industrials are 4 points lower.
Jack Scoville, PRICE Futures Group vice president, says the soybeans are a little higher due to the lack of improvement in the USDA condition ratings and the slow start to the harvest.
"I view it as a short-term short-covering rally and nothing more. Meanwhile, corn is working lower as the market keeps hearing good and above-expectations-type yield reports. Still a long way to go there and that could change too, but for now the corn seems to be out there," Scoville says.
Scoville adds, "I got a $4.30 target on Dec. corn, for now. But I hear a lot of $4.00 talk from others. Wheat is kind of following corn; the spread between the two is wide enough, for now."