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Soybeans Close 19¢ Higher Wednesday

Fund buying is seen as the supporter.

DES MOINES, Iowa -- On Wednesday, the CME Group’s soybean market rocketed higher on demand, fund-buying and a weaker U.S. Dollar.

At the close, the December corn futures settled 4¾¢ higher at $3.54; March futures finished 4¼¢ higher at $3.63¼ per bushel.

November soybean futures finished 19¼¢ higher at $10.10, and January soybean futures finished 18¾¢ higher at $10.21.

December wheat futures settled 7¼¢ higher at $4.11½.

December soy meal futures closed $10.90 per short ton higher at $319.10. December soy oil futures closed 0.08¢ lower at 35.72¢ per pound. 

In the outside markets, the Brent crude oil market is $0.83 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 21 points higher.

Alan Brugler, president of Brugler Marketing & Management LLC, says that the higher markets are a result of macro factors.

“The move up is mostly due to a weaker dollar. If the buck is going to pull back, one should not sell anything.”

Mike North, president of Commodity Risk Management Group, says that palm oil futures closed higher, helping the soybean complex.  

“Additionally, strong crush margins in China support import soybean purchases. This gave rise to a breach of $10 in November beans overnight. Markets continue to be buoyed by speculative bids, while prices remain above $10 per bushel,” North says.  

However, with South America jumping in front of the U.S. on a sale to China overnight, pressure will exist to keep U.S. prices lower in order to maintain the export story that has dominated the conversation in recent weeks, North says.  

“Additionally, crude oil inventory builds will not allow the soybean oil story much more room, giving cause to some correction in the market that has led crush values higher,” North says.  

The fact that producers are being instructed to make some new-crop sales of 2017 soybean production is a good thing. When another significant shift to added soybean acres is already making news, $10 values become something to grab hold with early sales, North says.

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