(Agriculture.com) – Pre-USDA crop estimates helped the CME Group corn, soybean markets settled higher Tuesday.
The March futures corn contract closed 3 cents higher at $6.88. The Jan. soybean futures contract settled 3 cents higher at $14.13. March wheat futures finished 1 cent lower at $7.50 per bushel. The Jan. soyoil futures contract finished $0.40 lower at $49.10. The January soymeal futures contract ended $2.10 higher at $410.60.
In the outside markets, the NYMEX crude oil is $0.05 per barrel higher, the dollar is higher and the Dow Jones Industrials are 51 points lower.
Tim Hannagan, Alpari (U.S.) senior grain analyst, says today’s action reflects the recently released industry estimates for Friday’s USDA Crop report.
Corn is higher, as estimates suggest production will decline 100 million bushels. Wheat is up slightly, as ending stocks are expected to decline 11 million bushels even as production estimates are higher. Beans are marginally lower, with production expected to show a 28 million bushel increase with ending stocks up 5 m.b,” Hannagan says.
It’s all small lot positioning and posturing prior Friday’s release, he says.
“Look for more widely traded ranges Wednesday and Thursday, as this report is known for surprises. Corn has had a limit move 5 of last 6 years. This will allow for more long and short liquidation on the fear of a report surprise,” Hannagan says.
