Soybeans, Grains Close Higher on Bargain Hunting, Planting Delays
Soybeans and grains closed higher on Friday as bargain hunters jump on cheap supplies and on renewed concerns about wet weather in the Midwest.
Bean futures plunged 31 cents on Thursday, giving investors a cheap entry point in the market. Corn and wheat were also down yesterday after the Brazilian real tanked amid a political crisis. A weaker real boosts demand for supplies from the South American country. The real has stabilized while the U.S. dollar declines, making U.S. products more appealing, analysts said.
Futures also may be improving as wet weather continues in the Midwest, potentially delaying planting. Thunderstorms and flooding is expected in parts of Missouri, Illinois and Indiana this weekend, according to the National Weather Service.
"There is just enough concern about how the timeliness of the planting of the rest of the crop," Tomm Pfitzenmaier said in a note to clients. "Traders may not want to press the short side in here especially since the funds already hold a substantial short position. The Brazilian political problems do not change the world supply/demand tables, but they could change U.S. competitiveness versus the Brazilians."
Soybean futures for July delivery added 8 1/2 cents to $9.53 1/2 a bushel on the Chicago Board of Trade. Soymeal lost 20 cents to $307.30 a short ton and soy oil rose 0.61 to 33.05 cents a pound.
Corn rose 6 1/4 cents to $3.72 1/4 a bushel.
Wheat futures added 10 1/2 cents to $4.36 1/4 a bushel in Chicago and Kansas City gained 12 cents to $4.38 a bushel.