Wheat Emerges as the Market Leader Friday
DES MOINES, Iowa -- On Friday, the CME Group’s wheat market remains up double-digits.
At midsession, the September corn futures are 1¼¢ lower at $3.64. December futures are 1¾¢ lower at $3.78.
November soybean futures are 8½¢ lower at $8.88. January soybean futures are 8¼¢ lower at $9.01.
September wheat futures are 11¼¢ higher at $5.73.
September soymeal futures are $3.70 per short ton lower at $330.90. September soy oil futures are 0.13¢ higher at 28.61¢.
In the outside markets, the NYMEX crude oil market is $0.39 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 100 points higher.
Today, wheat is the leader, yesterday soybeans.
Jack Scoville, The PRICE Futures Group’s senior market analyst, says that wheat is the upside leader.
“The demand news this week has really changed the market attitudes. We might set back if the demand news does not keep on coming, but the specs I think are still short enough to keep prices relatively supported for now. Just about all major exporters have faced bad wheat crops this year, world price are higher, and that is good news for those who got wheat to sell,” Scoville says.
“I think along with the rain there is a reality creeping back into beans that low-level talks at the end of the month do not mean instant Chinese buying or that disputes will be resolved. Lots of talk that these rains can really boost crop potential if they are universal and good rains. So far many areas have needed rains and some of the drier areas have had some beneficial precipitation,” Scoville says.
Corn is kind of caught in between, but corn demand is strong, and the market should find support on a decent pullback, he says.
Al Kluis, Kluis Advisors, says that the soybean market has showed strength this week on trade and yield ideas.
“On Thursday, the soybean market was on fire on nothing more than the announcement that China will be coming to the U.S. to discuss trade,” Kluis stated in a daily note to customers. Couple that with some traders who aren’t so sure we can raise soybeans with a 51.6-bushel-per-acre yield, and soybeans traded 28¢ higher yesterday.”
He adds, “Keep a close eye on news out of the White House. There are rumors that the U.S. and Mexico are getting close to negotiating a trade deal, and that China may come to the U.S. by the end of the month. This is all positive news for U.S. grain prices.”