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Nearby Soybeans Top $10 At Close

Des Moines, Iowa -- At the close of trading Friday, the December corn futures finished 3 3/4¢ higher at $3.52 3/4, while March futures finished 3 3/4¢ higher at $3.66 1/2.

Nov. soybean futures finished 8 1/4¢ higher at $10.00 1/4. Jan. soybean futures were 7 3/4¢ higher at $10.10 1/4.

December wheat futures closed 9¢ higher at $4.39 1/2.

Dec. soy meal futures finished $2.30 per short ton higher at $328.60. Dec. soy oil futures closed $0.41 higher at 33.69¢ per pound.

In the outside markets, the Brent crude oil market is $0.52 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 35 points higher.

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Des Moines, Iowa -- At mid-session Friday, The Dec. corn futures are 2¢ higher at $3.51. March futures are 2¢ higher at $3.64 3/4.

Nov. soybean futures are 5 3/4¢ higher at $9.97 3/4.  Jan. soybean futures are 5 1/4¢ higher at $10.07 3/4.

December wheat futures are 3 1/4¢ higher at $4.33 3/4.

Dec. soy meal futures are $1.70 per short ton higher at $328.  Dec. soy oil futures are $0.38 higher at 33.66¢ per pound.

In the outside markets, the Brent crude oil market is $0.76 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 37 points higher.

“The rally in beans is mostly in reaction to the USDA reports.  USDA showed lower than expected ending stocks, and that was part of it,” says Jack Scoville, señor market analyst with The Price Futures Group.  “But it seems that the lower yield expectation, not a huge change but enough, really triggered the buying.  Ideas are that even lower national yields are coming in the next couple of reports.  Plus we are keeping an eye on Brazil and Argentina, where the weather is far from ideal—too dry north, too wet south and northern Argentina.  Specs were leaning the wrong way I think on ideas of bigger area making bigger production. “

At Roach Ag  Marketing, Brian Roach sees more upside potential for soybean futures. “If we can hold this into the close today and not loose to much on Monday…I would look at the next level of resistance around $10.20,” he says.

So far, soybean futures have only regained about 70¢ of the normal rebound from August lows. It usually rallies $1.50 to $1.80 from those lows into rallies in the following spring or summer.

With strong soybean exports, “the trade is adopting the idea that ending stocks of 430 million bushels will continue to get smaller,” in future USDA reports.

Growth in swine inventory in China adds to his optimism that demand for meal and soybeans will continue strong, he says.

Soybean prices also mean the the corn-soybean ratio still favors planting more soybeans. As the market seeks to attract more corn acres, that gives upside potential to corn futures as well, he says.

“I think we’ll probably look back at today’s corn prices and say they were too cheap,” he says.

“The thing that’s not working well for the corn market is wheat,” he adds, referring to potential competition from cheap feed wheat. “The fundamentals in wheat remain bearish,” he says.

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At the open, the December corn futures are 1¼¢ higher at $3.50¼. March futures are 1¢ higher at $3.63¾.

November soybean futures are 1¼¢ higher at $9.93¼; January soybean futures are 1¢ higher at $10.03½.

December wheat futures are 1½¢ higher at $4.32.

December soy meal futures are 60¢ per short ton lower at $325.70. December soy oil futures are 0.45¢ higher at 33.73¢ per pound.

In the outside markets, the Brent crude oil market is 76¢ higher, the U.S. dollar is lower, and the Dow Jones Industrials are 29 points higher.

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