Corn, Wheat Prices Finish Higher

May 29th, 2015

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Category: Grains, Oilseeds

Farm track 450x299(Agriculture.com) – On Thursday, the CME Group’s corn and wheat markets trade higher. Ideas of crop damage from excessive rain and speculative short covering help the grains.

At the close, the July corn futures finished 4 cents higher at $3.53 1/2 per bushel. The Dec corn futures ended 3 1/4 cents higher at $3.70 per bushel.
July soybean futures closed 1 cents lower at $9.26. Nov. soybean futures finished 4 1/2 cents lower at $9.02.

July wheat futures closed 1 cents higher at $4.88.

July soymeal futures finished $3.30 per short ton lower at $304.80. July soyoil futures finished $0.33 higher at $32.06.

In the outside markets, the Brent Crude oil market is $0.32 lower per barrel, the U.S. dollar is lower, and the Dow Jones Industrials are 38 points lower.

Jack Scoville, The PRICE Futures Group’s Senior Market Analyst, says that wheat and corn prices are getting support from the flooding rains and also on ideas the crops are oversold.  “It seems to be that speculative short covering is underpinning the grains, as much as anything.  The soybean market is trading both sides of unchanged, waiting for news.  Some support for commodities, in general, coming from the US Dollar not flying away.  Volumes are good today, lots of spec action, not so much commercial action.  The hedge side is quiet,” Scoville says.

Mike North, President of Commodity Risk Management Group, says that concerns over flat or declining Russian wheat yields, together with the softer dollar has wheat reaching for higher ground.

“However, its reach hasn’t taken it far.  Chicago wheat is the only market with a solid higher trade, while KC and Minneapolis teeter totter on prices either side of yesterday’s settlement,” North says.

Corn is finding some minor profit taking, after yesterday’s move to contract lows, North says.  “Soybeans are weaker as forecasts for rain into next week raises some thoughts for added soybean acres.  The market is lacking much of the volume witnessed in yesterday’s trade. So, vacuum trades have been noted earlier in the session.”

Alan Brugler, President of Brugler Marketing & Management LLC, says that soybeans are down due to meal dropping $5.00 per ton, pressuring product value.

 

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