Wheat closes sharply higher
CHICAGO, Illinois (Agriculture.com)--Profit-taking dropped corn and soybean prices, demand pushes up wheat Thursday.
The Dec corn futures settled 4 cents lower at $4.29 1/4. The Nov. soybean contract ended 18 1/2 cents lower at $10.12 1/4. The Dec. wheat futures settled 25 1/2 cents higher at $7.14 1/4. The Dec. soymeal futures contract closed $4.90 per short ton lower at $295.10, and Dec. soyoil down 97 points at $40.48.
In the outside markets, the NYMEX crude oil is $1.04 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 153 points.
Tim Hannagan, PFGBest.com senior analyst, says that all the grains traded higher on several fronts on the opening. "A very strong export sales report helped kick-start the markets. This suggests lower ending stocks on future USDA monthly crop reports. Also supporting the markets is the lack of rain in Russia, as that country tries to plant the winter wheat crop. But, we saw profit-taking at mid-session and this has been the pattern all week, to sell the rallies as seasonally prices go lower into the Sept."
Meanwhile, to get a bigger picture of the markets, one has to look towards the September government report, one CME Group floor trader, choosing to remain anonymous, says. "Russia will import from neighbors. That is why quotas on exports from Ukraine can be low. This makes the picture quite bullish for grains and it has been traded."
The trader adds, "The story, going forward, is yield for corn and beans. Large yields can accommodate large exports. But, the U.S. needs higher acreage and yield to satisfy corn demand. Otherwise corn will have to be rationed. We will know on Sept 10th, when the USDA updates its crop reports, which way markets are headed."