Soybeans End Up, Lose Big Gains
DES MOINES, Iowa (Agriculture.com)--On Thursday, while the CME Group soybean market gave back quite a bit of gains, it still finished higher. Meanwhile, corn and wheat prices settled lower.
At the close, the Dec. corn futures settled 1 1/4 cents lower at $3.69.
Nov. soybean futures closed 8 1/4 cents higher at $10.84.
Sep. wheat futures end 2 cents lower at $5.28.
The Dec. soymeal futures contract finished $2.70 per short ton higher at $350.00. Dec. soyoil futures finish unchanged at $36.35.
In the outside markets, the NYMEX Brent crude oil is $0.93 per barrel lower, the dollar is lower and the Dow Jones Industrials are 3 points lower.After a 30 cent bounce in bean futures prices, 12 cent bounce in the wheat and 6 cent bounce in corn, sellers appeared as grain futures trade resumed at 8:30 am and have since taken most of the price improvement out of the beans and pushed corn and wheat prices below unchanged.
Helen Pound, Sr. Futures Market Specialist, says some air has been taken out of the inflated start to trading Thursday.
"Although weekly bean and corn export sales were better than expected, dramatic increases in barge and rail freight costs resulting in escalating US export basis offers are expected to make US grains uncompetitive in the world market going forward," Pound told customers in a daily wire.
On Thursday, the USDA Weekly Export Sales Report shows stronger than expected demand.
For wheat, the USDA estimates sales, for the week ending July 17, 2014, at 551,700 metric tons vs. the trade's expectations of between 350,000-550,000 metric tons
Corn exports totaled 1.434 million metric tons vs. the trade's expectations of between 400,000-900,000 metric tons
Soybean sales equaled 2.677 million metric tons vs. the trade's expectations of between 250,000-800,000 metric tons
For soybean meal, the USDA pegged sales at 442,800 metric tons vs. the trade's expectations of between 150,000-300,000 metric tons.