Though slightly off their daily highs, the CME Group corn, soybean and wheat markets stay sharply higher Monday. Crop-stressing weather keeps the farm markets underpinned.
At mid-session, the July corn futures are trading 13 1/2 cents higher at $6.86, while the Dec. contract trades 18 cents higher at $6.53 3/4. The July soybean contract is trading 17 cents higher $15.30, while the Nov. 2012 contract trades 12 1/2 cents higher at $14.40. The July wheat futures are trading 5 cents higher at $7.44. July soyoil futures trade $0.08 lower at $52.13. The July soymeal futures are $7.50 higher at $443.20.
In the outside markets, the NYMEX crude oil is $2.11 per barrel lower, the dollar is higher and the Dow Jones Industrials are 65 points lower.
Jack Scoville, PRICE Futures Group vice-president, says it is definitely a weather market, and most of the Midwest looks hot and dry for at least the next week.
“Speculators started buying last night, and bought again in early trading. Now, it seems like we have turned sideways and slow. Maybe partly holiday, maybe partly waiting for the next model runs for the next forecast,” Scoville says.
A tweet reported Monday that WeatherRisk.com is finding potential for a change in the weather for the second half of the month, he says.
“Corn tasseling in Ohio and Indiana is happening with stalks at 5 feet and under. Corn and beans had good color, but looked short in eastern Wisconsin over the weekend. Without a big change in the weather the price down side should be limited,” Scoville says.