Soybeans sustain rally into close
DES MOINES, Iowa (Agriculture.com)--Fresh demand news helped the CME Group soybean market finish stronger Wednesday. Corn finished higher, playing off of the strong bean performance.
The Dec. futures corn contract closed 2 1/4 cents higher at $7.25. Jan. soybean futures contract closed 11 cents higher at $14.19. Dec. wheat futures settled 2 1/4 cents lower at $8.48 per bushel. The Dec. soyoil futures contract finished $0.65 higher at $47.67. The Dec. soymeal futures contract settled $2.90 per short ton higher at $436.00.
In the outside markets, the NYMEX crude oil is $0.94 per barrel higher, the dollar is lower and the Dow Jones Industrials are 158 points lower.
Jack Scoville, PRICE Futures Group vice-president, says that soybeans are higher on the Chinese and 'unknown' demand, but wheat and corn not getting the demand news today and having trouble.
"Much of the buying in beans I think is speculative, but there is spec- selling interest left over as well. Not seeing much commercial action today. Basis levels are very strong and people are starting to talk this up a bit," Scoville says.
Also, at least for me, soybeans made some down side targets and can at least trade sideways for now, he says.
Corn has some downside potential left, but buyers are short bought. So, you will likely start to hear of demand starting to pick up like the South Korea buy today of optional-origin corn. Overall, the market needs bullish news to keep this going, it might just turn sideways now instead of going up or down," Scoville says.