Soybeans end on sharp rally

(Agriculture.com) – Reaching record-highs in some contracts, the CME Group corn, soybean markets received support from Midwest crop concerns Tuesday.

The Dec. futures corn contract settled 15 cents higher at $8.38 3/4, the Sept. corn contract hit a new spot-month contract high, closing up 16 cents at $8.31 1/4. The Nov. soybean contract finished 46 3/4 cents higher at $17.30 1/4, a new intraday day high. Dec. wheat futures settled 19 1/4 cents higher at $9.22 per bushel. The Dec. soyoil futures contract finished $1.69 higher at $56.22. The Dec. soymeal futures contract settled $11.10 per short ton higher at $524.60. The Dec. soyoil futures are trading $1.31 higher at $55.84.

In the outside markets, the NYMEX crude oil is $0.70 per barrel higher, the dollar is lower and the Dow Jones Industrials are 81 points lower.

Tim Hannagan, Alpari (U.S.) senior grain analyst, says the Chinese bean buying on last Thursday’s weekly export sales report has beans in a leadership roll. “Meanwhile, all markets are getting buying fuel from early yield reports. Corn and bean yields are coming in under the last USDA Crop Report,” Hannagan says.

A CME Group floor trader agrees the rally is related to weaker yield projections. “I think most of this rally is tied to early yield estimates. The $7.50 corn price was not shutting down demand. And we know the bean demand structure. Plus, South America’s 2013 supplies are a long ways away. I’m still bullish, mostly beans,” the floor trader says.