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Soybeans Rally 22¢ Monday

Corn is up slightly

DES MOINES, Iowa -- On Monday, the CME Group's soybean complex has staged a sharp rally on demand strength.

At mid-session, the December corn futures are 1/2¢ higher at $3.46, while March futures are 1/2¢ higher at $3.53 per bushel.

January soybean futures are 22 1/2¢ higher at $10.16, while March soybean futures are 22 1/4¢ higher at $10.24.

December wheat futures are 1/2¢ higher at $4.08 1/2.

December soy meal futures are $7.60 short ton higher at $318.00. December soy oil futures are $0.59 higher at 34.64¢ per pound. 

In the outside markets, the Brent crude oil market is $1.71 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 52 points higher.

Deanna Hawthorne-Lahre, StatFutures co-founder and trader, says that soybeans are the news in the grain room, as exports continue strong.

“It seems that the Chinese are loading up ahead of continued dollar strength. Something is up. Also feeling like beans wanting to buy more corn acres in 2017. Wheat and corn are dead money until the New Year, and perhaps beyond. Copper and dry freight continue their move up ahead of a Trump Administration. That is the big news,” says Hawthornw-Lahre.

Jack Scoville, The PRICE Futures Group’s Senior Market Analyst, agrees that China is moving this market.

“I understand the Chinese are buying, and I know specs are.  We are up against the monthly highs in the beans and really there should be no real reason to go higher.  Producers are showing some interest in selling this rally as well.  We normally rally the beans and grains this week, then sell off into the end of the year,” Scoville says.  

He adds, “it looks like the rally is a little early this year.  My guys are selling.  Away from the Chinese news there does not seem to be a real good reason to own ag commodities, and we can fade from here on ideas that the Thanksgiving Day rally came early this year.  The weather in SA appears good, nothing down there to support things.  US Dollar is a little lower so that is helping the rally.”

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