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Soybeans Settle Higher, and Wheat Up, Too
Soybeans and wheat finished the day higher, while corn closed lower. Sellers kept a cap on any rallies.
Prices have turned mixed on Thursday after the U.S. Department of Agriculture raised its outlook for corn and soybean production and yields. Futures rose yesterday, partly on speculation that the lower prices would spur demand, but it seems the optimism was short-lived.
At the close, the Dec. corn futures finished 1/4 cent lower at $3.62. Nov. soybean futures went off the board 3/4 cent higher at $8.69.
Dec. wheat futures closed 3 1/4 cents higher at $4.98.
Dec. soymeal futures ended $2.60 per short ton lower at $291.40. Dec. soyoil futures settled $0.26 higher at $27.44.
In the outside markets, the crude oil market is $1.37 lower per barrel, the U.S. dollar is lower, and the Dow Jones Industrials are 217 points lower. Corn production in the marketing year that started September 1 was projected by the USDA at 13.654 billion bushels on yields of 169.3 bushels an acre, both topping analyst estimates and the prior month’s forecasts. The government estimated inventories this year will be a record 1.76 billion bushels.
U.S. soybean output was forecast by the USDA at a record 3.981 billion bushels, beating estimates and topping last year’s 3.927 billion-bushel crop, at the time the biggest ever. Yields were raised from an October estimate to 48.3 bushels an acre, also a record. Carryout is seen at 465 million bushels, more than double last year.
“The sellers appear to be back this morning,” said Tomm Pfitzenmaier, the president at Summit Commodity Brokerage in Des Moines. “We are trying to keep ourselves from getting too bearish here, but with burdensome supplies that could be growing and the farmer committed to storing what is obviously a huge crop, it is hard to put together a scenario that allows the corn market to go very far on the upside.”