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Soybeans, wheat close higher

Updated: 03/02/2012 @ 1:31pm

CHICAGO, Illinois (Agriculture.com)--A bucket full of bullish factors backed the the CME Group soybean market's rally Friday.

The May corn futures settled 1 cents higher at $6.55. The May soybean contract closed 10 1/2 cents higher at $13.33. The May wheat futures ended 10 1/2 cents higher at $6.74 1/2.  The May soymeal futures finished $3.60 per short ton higher at $359.10. The May soyoil futures finished $.19 lower at $54.08.
In the outside markets, the NYMEX crude oil is $1.70 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 18 points.

On Friday, an 'unknown' buyer purchased 285,000 mt of U.S. soybeans, while South Korea bought U.S. corn.

Joe Bedore, FC Stone Inc.'s CME Group trading floor manager says the market is being lead around by the soybean demand.

"It's all about the big soybean purchase today, presumably from China. We are seeing lower soybean production totals for Brazil, based on fresh private firm estimates," Bedore says.

Meanwhile, corn prices would be 12-14 cents lower if it wasn't for soybeans, Bedore says. "With the new crop insurance rates, it looks like farmers can make $93 per acre more by planting vs. planting soybeans." 

So, the corn market is digesting that new dynamic, Bedore says.

Jack Scoville, PRICE Futures Group vice president, agrees soybeans have plenty of support.

"Demand for soybeans, Argentina's farmer strike at the ports, and lower crop estimates for Brazil's 2011-12 soybean production combine for nice underpinning," Scoville says.

For wheat, today's news that Russia and Australia's 2011-12 wheat production is seen as falling supports that grain's market.

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