Soybeans took over the lead in the grain markets Thursday on the Chicago Board of Trade on strength of continued strong export demand and tight domestic supplies, according to the Des Moines Register. The November contract rose 12 cents per bushel to $11.88.
Corn futures began the day strong, at one point up 9 cents per bushel, but the profit-taking that drove down prices Wednesday for the first time in five trading days struck again and December corn finished the day down 2 cents per bushel at $5.67.
Analyst Arlan Suderman of Farm Futures Magazine saw positives in corn’s correction, noting “a break to the lower level would actually be healthy for maintaining a solid demand base long-term, but highly emotional money flow continues to drive the market.”
Since June corn prices have surged more than 60 percent on fears of a shorter crop and continued demand from export and ethanol markets, which got a mild boost yesterday with the federal government’s approval of the E15 blend in some automobiles.
The December lean hog contract dropped $2.80 per hundredweight, dipping below $70 to $68.90. That price is off about $10 per hundredweight from midsummer levels.
Traders say there is a temporary bulge in hog supplies, with summer grilling season completed and a steady supply of hogs still coming through the chutes.
Source: Des Moines Register