Corn, soybeans to jump higher Tuesday
With a correction in prices due to a slower-than-expected U.S. planting pace, the CME Group's corn, soybean, and wheat markets are expected to start higher Tuesday.
The early calls for the commodities on Tuesday, May 7, 2013, are higher. Corn is seen opening 4 to 6 cents higher, soybeans 9 to 10 cents higher, and wheat 6 to 9 cents higher.
In overnight trading, the July corn futures contract traded 4 cents higher at $6.41 per bushel. The December corn futures traded 2 cents higher at $5.40. July soybean futures traded 10 cents higher at $13.79 per bushel, while November soybeans traded 8 cents higher at $12.15. The July wheat traded 6 cents higher at $7.09. For July soybean meal futures, the contract traded $3.60 per short ton higher at $404.80. The July soybean oil futures traded 14 cents higher at $48.90.
The outside markets are favorable for Tuesday's grain trade. The real factors driving the calls will be the higher overnight markets.
In its weekly Crop Progress Report Monday, the USDA pegged the U.S. corn crop at 12% planted compared to the five-year average of 47%, and 71% a year ago. One analyst noted that Illinois had just 7% corn planted, about half of what was expected.
USDA estimated the U.S. soybean crop as 2% planted.