Weather drives markets higher
CHICAGO, Illinois (Agriculture.com)--The unfavorable planting weather helped the CME Group grain and soybean prices close higher Thursday.
The July corn futures settled 4 cents higher at $7.44 1/2. The July soybean contract closed 20 1/2 cents higher at $13.89 3/4. The July wheat futures settled 14 cents higher at $8.34 3/4. The July soybean meal futures settled $9.30 per short ton higher at $363.90. The July soyoil futures closed $1.20 higher at $58.91.
In the outside markets, the NYMEX crude oil is $0.66 per barrel higher, the dollar is lower and the Dow Jones Industrials are up 32 points.
Tim Hannagan, PFGBest.com senior grain analyst, says next week's planting weather doesn't look any better than this week's. "Expect Monday's 3 PM Crop Progress Report to show corn, spring wheat and oat plantings well behind the five and ten-year averages, with the following Monday report even further behind. This looks to give us a positive start to the futures next week as traders price in planting concerns."
With plenty of time left for a good corn crop, the real threat late planting brings to corn is just fear not fact, he says. The planting weather is really bullish for the market today.
"But, futures trades fear before fact. The first weather guru to scream warmer, drier weather lies ahead will break the market hard. It only takes one to scream 'fire' in a theater and everyone runs to the exit. For example, funds are fat on weather profits," Hannagan says.