Soybeans Close 27¢ Higher Monday
DES MOINES, Iowa -- Short-covering and weather problems at the Gulf ports supported a soybean rally Monday.
Following a Friday USDA estimate of the largest U.S. corn crop and soybean crops, the corn and soybean markets still found buyers.
At the close, the September corn futures settled 4¼¢ higher at $3.26½; Dec. futures are 4¢ higher at $3.37 per bushel.
September soybean futures settled 24¾¢ higher at $10.23¾, while November soybean futures finished 27½¢ higher at $10.09¼.
September wheat futures ended ½¢ lower at $4.22.
September soy meal futures closed $7.10 short ton higher at $339.60. September soy oil futures closed $1.18 higher at 33.21¢ per pound.
In the outside markets, the Brent crude oil market is $1.21 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 78 points higher.
Deanna Hawthorne-Lahre, StatFutures cofounder, says demand is the main driver, along with technical features.
“Gulf rains and a strong business book are bolstering some short-covering,” Hawthorne-Lahre says. “A gap in soybeans at $10.06½ per bushel has been sitting on the charts for a while. It got filled today. Also, heavy rains in the New Orleans area has the supply chain backed up a bit. A day of physics, as I call it, when pressure is released and the market finds a new level.”
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On Friday, the USDA pegged U.S. corn yields at 175.1 bushels per acre, far above trade estimates and up a whopping 7.1 bushels per acre over last month. Production is estimated at 15.153 billion bushels.
Soybeans yields were up 2.2 bushels to 48.9 bushels per acre. Production was estimated at a monster 4.06 billion bushels, about 60 million higher than trade estimates and up 180 million more than last month.