Soybeans Settle 26¢ Higher Tuesday
DES MOINES, Iowa -- On Tuesday, the CME Group’s soybean market finished on its daily high, rallying double-digits off of Brazilian weather and end-of-month and end-of-year profit-taking.
At the close, the March corn futures settled 9¼¢ higher at $3.55.
January soybean futures finished 25¾¢ higher at $10.14¾, while March soybean futures closed 26¾¢ higher at $10.24¼.
March wheat futures finished 16¢ higher at $4.09½.
January soy meal futures finished $10.00 a short ton higher at $321.60. January soy oil futures settled 0.52¢ higher at 35.40¢ per pound.
In the outside markets, the Brent crude oil market is $0.82 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 27 points higher at 19,960 points.
Bob Linneman, Kluis Commodities broker, says the grain bulls are at work today.
“They are trying their best to get the ball rolling in a positive direction, after a terrible streak of losses. January soybeans have lost over 50¢ in the last five trading sessions. Corn and wheat have given back 17¢ and 25¢ respectively over the past seven trading sessions,” Linneman stated in a daily letter to customers.
Jack Scoville, The PRICE Futures Group’s senior market analyst, says that the rally seems to be coming from forecasts for hot and dry weather in central and northern Brazil for the next couple of weeks.
“It is soybean flowering time, or flowering is just beginning depending on the area. Plus, the northern Brazilian region needs frequent rains. Instead, the forescast calls for dry and somewhere near 100°F. for temps. Not the reason for strong yield ideas.”
Scoville adds, “All of these markets are oversold. So, I think specs are buying to cover before the end of the year, too. Plus, a lot of talk the index funds will add grains at the rebalancing next month. So, some are buying to get ahead of the big guys. Not a big volume day despite the volatility.”