Soybeans close sharply higher
DES MOINES, Iowa (Agriculture.com)--Bullish news and trader nervousness ahead of this week's USDA Reports have the CME Group helped the CME Group soybean market close sharply higher Monday.
The July corn futures settled 8 1/2 cents lower at $6.36. The July soybean contract settled 12 1/2 cents higher at $13.84 1/4. The July wheat futures closed 5 3/4 cents higher at $6.70 1/4. The July soymeal futures finished $4.50 per short ton higher at $378.40. The July soyoil futures are trading $0.55 higher at $55.84.
In the outside markets, the NYMEX crude oil is $0.28 per barrel higher, the dollar is lower and the Dow Jones Industrials are up 153 points.
Tim Hannagan, PFGBest.com senior grain analyst, says the rally is based off of the traders factoring in the common fear of recent years that we won't plant enough acres of corn, beans or wheat to keep up with demand.
"But, as always, expect profit-taking by 'longs' in the market ahead of the report, as longs have the risk going into Friday's report. Note, they made new highs for the month of March and February's reports to start the week. Prior to the March 9 USDA Report, profit-taking occurred days ahead of its release. So, positioning and posturing for the bulls and bears will leave its foot print this week," Hannagan says.