Soybeans, Wheat Close Double-Digits Higher
DES MOINES, Iowa (Agriculture.com)--On Wednesday, the CME Group's corn, soybean and wheat markets uses multiple bullish factors to close higher.
At the close, the Dec. corn futures settled 7 cents higher at $3.74.
Nov. soybean futures finished 14 1/4 cents higher at $10.80.
Sep. wheat futures closed 15 1/2 cents higher at $5.68.
Dec. soymeal futures ended $4.60 higher at $348.20. Dec. soyoil futures closed $0.33 higher at $36.20.
In the outside markets, the NYMEX Brent crude oil is $0.52 per barrel lower, the dollar is lower and the Dow Jones Industrials are 11 points higher.
Joe Bedore, FC Stone's CME Group trading floor manager, says the markets are reacting to all of the bears going to one side of the boat.
"Everybody saw the rains that fell in Iowa and elsewhere, and that sent a sell, sell, sell signal to everyone. Well, that's dangerous. So, you have the opposite trade that steps in," Bedore.
In addition, there are floor rumors about Argentina placing a clamp on corn export licenses. "This is why the corn market didn't break and has been holding up, all morning," Bedore says.
For the wheat market, it is gaining strength on poorer quality products in Europe, Bedore says. "Plus, Russia's Putin lining up more soldiers on the Ukraine border has the market nervous," Bedore says.
For soybeans, the rally is unsubstantiated, he says. "Overall, we have too many short positions, too many people thinking the market should drop, world export issues, wheat quality issues and Ukraine/Russia military concerns."