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Corn, Wheat Prices Close Slightly Higher Tuesday

Spread trade is the feature on the floor.

DES MOINES, Iowa -- On Tuesday, the CME Group’s corn, wheat markets ended up, soybean futures lower.

At the close, the March corn futures settled ½¢ higher at $3.61 per bushel. January soybean futures finished 3¢ lower at $10.28.

March wheat futures closed ¼¢ higher at $4.17½.

January soy meal futures settled $1.10 a short ton lower at $315.10. January soy oil futures are 0.19¢ lower at 36.78¢ per pound. 

In the outside markets, the Brent crude oil market is $0.03 per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 126 points higher.

Jason Ward, Northstar Commodity’s director of grains and energy, says that today’s trading features mostly spreading.

“More and more chatter of soybeans over corn and how many acres are going to shift away from corn. We are promoting a minimum of 5 million less corn acres and trying our guts out for 7 to 8 million less,” Ward says.
 
Ward adds, “All producers need to do is look at what can happen when they lower production. Take a look at what OPEC’s deal has done to crude prices and lower milk production has done to milk prices. All of a sudden everyone is turning profitable.”
 
Producers need to heed the markets’ plea and plant more soybeans but at the same time, protect the downside on those soybeans, he says.
 
Chinese soybeans are trading at a record over Chinese corn, Ward says. U.S. soybeans (new crop) traded to a 20-year high over new-crop corn last week.
 
“So, today’s move initially higher on soybeans was following Chinese meal moving up to new five-month highs. I also see weather in Argentina as supportive, but Brazil weather is bearish. So, South America is a mixed bag. I think you can lower Argentine production but raise Brazil for a net wash.”

 

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