Soybeans, wheat end up double-digits
DES MOINES, Iowa (Agriculture.com)--On Tuesday, the CME Group soybean market closed double-digits higher on a firming cash basis, while wheat is boosted by uncertain crop-weather.
The May corn futures contract closed 3/4 of a cent higher at $5.03. The Dec. corn futures closed 1/4 of a cent lower at $5.03. The May soybean futures contract finished 25 cents higher at $15.01. The Nov. soybean futures settled 9 cents higher at $12.29. May wheat futures closed 23 cents higher at $7.01 per bushel. The May soymeal futures contract is trading $8.30 per short ton higher at $487.40. The May soyoil futures settled $0.57 higher at $42.83.
In the outside markets, the Brent crude oil is $0.43 per barrel lower, the dollar is higher and the Dow Jones Industrials are 44 points higher.
Matt Connelly, Futures International floor trader, says the soybean market is being driven by the cash basis being firmer. "Also, the NOPA March stocks report coming out at 2.023 billion pounds, vs. some in the trade looking for 1.960 billion, could provide some fireworks."
Big picture, the market has an imbedded short in old crop beans, the export arm to all these vessels looking for a home, he says. "Commercials not letting China cancel or roll these beans to new crop, export arm to China, who we think is Marubeni, is long cash SHORT futures that are getting smoked. When he is out then old crop beans will break," Connelly says.