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Soybean prices close sharply higher

Updated: 09/07/2010 @ 1:55pm

CHICAGO, Illinois (Agriculture.com)--CME Group soybean prices surged higher Tuesday, corn finished slightly above zero. 

The Dec corn futures closed 1 3/4 cents higher at $4.66 1/4. The Nov. soybean contract ended 17 cents higher at $10.52. The Dec. wheat futures settled 6 cents lower at $7.35 1/4. The Dec. soyoil futures settled 93 points higher at $41.79. The Dec. soymeal futures closed $0.34 higher at $306.70 per short ton.

In the outside markets, the NYMEX crude oil is $0.69 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 80 points.Tim Hannagan, PFGBest.com senior analyst, says traders are taking some light profits Tuesday. 

"After Friday gave us the sixth consecutive close at near or over the high of the week and sixth consecutive higher Sunday, or this week a Monday higher opening, traders are taking some light profits. We're not seeing pre-report profit taking yet, but we may see that by Wednesday, before speculative longs enter for what's perceived to be a bullish crop report Friday."

Hannagan adds, "Supporting the lows are thoughts that tonight's crop condition report may show lower corn and bean condition numbers. That feeds into the report ideas for Friday of lower production and yield numbers cutting ending stocks along with a increase in demand."

Jack Scoville, PRICE Futures Group vice-president, says that the market started weak, but has recovered well.  

"I think there must be some demand around or something besides the Chinese purchase of soybean oil. At any rate, I think people are also genuinely worried about yields.  Delta yields do not seem good and eastern and southern Midwest yields are not so good either."

On Tuesday, USDA announced export sales of 40,000 metric tons of U.S. soybean oil to China during the 2010/2011 marketing year. U.S. export sales of 29,500 metric tons of soybean oil to unknown destinations during the 2010/2011 marketing year. Also, 21,000 metric tons of U.S. soybean oil was sold to Peru during the 2010/2011 marketing year.

The marketing year for soybean oil began Oct. 1.

Scoville adds, "I received a lot of big buying from my professional specs this morning in corn, so that is where the interest is. Pretty good price action so far today, as I think many had expected a down day after the overnight price action." 

Meanwhile, the CME Group announced Monday that there was record volume in CME Group grains on Friday. CBOT corn futures and options combined hit a record 722,606 contracts, surpassing the previous record of 716,442 contracts on June 12, 2008.

In addition, corn futures traded a record 556,034 contracts, surpassing the previous record of 516,076 June 12, 2008.

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