Soybeans Close 36¢ Higher Wednesday
DES MOINES, Iowa — On Wednesday, the CME Group’s soybean market continued to work its way towards the $12.00 level, and wheat markets finished higher too.
At the close, the July corn futures setled 3 1/2 cents higher at $4.31 1/4, Dec. futures finished 3 3/4 cents higher at $4.37 per bushel.
July soybean futures finished 36 1/2 cents higher at $11.77 3/4, while Nov. soybean futures closed 33 1/2 cents higher at $11.50 1/4.
July wheat futures ended 10 1/2 cents higher at $5.19 1/2.
July soymeal futures closed $9.30 short ton higher at $417.10. July soyoil futures ended $0.60 higher at $32.89.
In the outside markets, the Brent crude oil market is $0.69 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 60 points higher.
The grain rally is occurring because the markets keep getting bullish news to trade, according to a CME Group floor trader requesting anonymity.
“The rally started with abrupt change in crop quality and quantity in South America in April. But 90°F. weather, forecast for 10 out of the next 15 days, is worrying. A dying El Niño background also fans the bullish imagination, the trader says.
He adds, “Outside money flows into ag commodities with dismal riskless returns in interest rates.”
On Wednesday, USDA announced fresh export sales for the third day in a row. China bought 132,000 metric tons of soybeans for delivery during the 2015/2016 marketing year.
The marketing year for soybeans began Sept. 1.
According to EIA data, ethanol production averaged 1.006 million barrels per day (b/d) — or 42.25 million gallons daily, the Renewable Fuels Association reported in its press release Wednesday.
That is up an astounding 46,000 b/d from the week before and the second-largest total on record. The four-week average for ethanol production stood at 965,000 b/d for an annualized rate of 14.79 billion gallons.
Stocks of ethanol stood at 20.2 million barrels. That is a 2.6% decrease from last week.