Soybeans Rally To Close Higher
DES MOINES, Iowa (Agriculture.com)--The CME Group corn, soybean and wheat markets diverged Wednesday.
The July corn futures contract settled 7 cents lower at $4.95. The Dec. corn futures finished 6 cents lower at $4.89. The July soybean futures contract closed 3 cents higher at $14.86. The Nov. soybean futures closed 3 1/2 cents higher at $12.22. July wheat futures finished 19 cents lower at $6.90 per bushel. The July soymeal futures contract closed $1.80 per short ton higher at $486.50. The July soyoil futures finished $0.17 higher at $41.38. In the outside markets, the NYMEX crude oil is $0.79 per barrel higher, the dollar is lower and the Dow Jones Industrials are 93 points lower.
Jack Scoville, PRICE Futures Group vice-president, says there are a number of bearish market items.
"Funds are super long and someday will have to reduce this exposure. And, with mostly decent, if not perfect weather, here in the US, they got a problem."
The U.S. may be getting more soybeans from SA than the bulls care to admit, too, he says.
"I'm not sure just how much more the funds can add, in fact I was surprised they bought as much as they did. I am waiting to see how May closes, that will give a target for July, I guess," Scoville says.
Wheat is getting trashed on reports of better weather, he says.
"The super dry areas are still super dry, but most other areas keep getting better little by little. Corn down with wheat and the fact that a whole lot of the crop that is planted is now emerging. Drier forecasts after the current even moves by to get the rest of the crop in, including northern areas."