Soybeans Close 44¢ Higher, Headed For $12?

DES MOINES, Iowa — On Thursday, the CME Group’s soybean market closed sharply higher, with fund buying being the central bullish figure.

At the close, the July corn futures settled 1¼¢ higher at $4.15¼; Dec. futures finished ½¢ higher at $4.16¾ per bushel.

July soybean futures finished 44¢ higher at $11.44¼, while Nov. soybean futures closed 13¼¢ higher at $10.81¾.

July wheat futures finished 9¢ higher at $4.82¾.

July soy meal futures finished $19.20 per short ton higher at $418.30. July soy oil futures closed $0.07 higher at $32.26. 

In the outside markets, the Brent crude oil market is $0.08 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 22 points higher.

Jason Ward, Northstar Commodity Investment Co. grain analyst, says that a lack of farmer selling is supporting today’s rally.
“We are hearing no selling by producers, and new money flow to start June are backing the rally. Only explanation from down on the 31st to up the first two days of the month without any fundamental news,” Ward says.

Ward adds, “We are starting to get to break-even prices on December ’16 corn futures prices, for producers. So, I’m assuming we will see some hedging of risk.”

Matt Pierce, Futures International LLC floor trader at the CME Group Exchange, says that short-covering is causing the sharp rally.

“There is some more chatter of commercials getting caught short supply at the Gulf of Mexico port, domestically. But I doubt that. I think it’s momentum money coming into the front end.”

Pierce adds, “There is some fairly verifiable chatter of Brazilian cargos of beans shifting to U.S. shores this week. Nothing firm yet.”

Corn is following on fresh fund buying present, Pierce says. “Wheat big rally on short-covering of only net shorts on floor.”