Corn closes up

CHICAGO, Illinois (Agriculture.com)--Wet weather outlooks, keeping slow planting in-play, helped the CME Group corn market to settle higher Friday. 

The July corn futures settled 11 1/4 cents higher at $7.59 1/2. The July soybean contract closed 3/4 of a cent higher at $13.80 1/4. The July wheat futures ended 5 1/2 cents lower at $8.06. The July soybean meal futures settled $8.00 per short ton lower at $360.60. July soyoil closed $0.38 higher at $57.46.

In the outside markets, the NYMEX crude oil is $1.09 per barrel higher, the dollar is higher and the Dow Jones Industrials are down 45 points.

Jack Scoville, PRICe Futures Group vice-president, says the market traded demand and weather Friday. "It is partly weather, but it is a lot of strong cash markets here in the Midwest.  I have not seen much change at the Gulf, so it is domestic demand running this thing higher," Scoville says. 

Scoville adds, "I have heard that the ethanol crowd has been buying but I have absolutely no confirmation that they are the ones. But, someone wants corn especially and also some beans, and the farmers are not selling right now."

Only river basis is weak and this is due to the flooding, he says.  "Otherwise, lots of strong basis and little offer combined with more rains for the weekend."

Meanwhile, next week is setting up for potentially some dramatic price swings, as several major issues collide, according to Tim Hannagan, PFGBest.com senior grain analyst.

"First, heavy rains that are expected to start the week, would be bullish for prices. Two, month-end profit-taking, would turn the market bearish. Three, potential dry late May would turn the market higher," Hannagan says. 

Traders look to go home long grains Friday, Hannagan says. "The trade anticipates that we will see the seventh consecutive higher overnight market opening Sunday night and Monday, as weather looks to bring rains to 80% of the Midwest Corn Belt states Tuesday through Thursday.

Source: http://www.agriculture.com/markets/analysis/corn/cn-closes-up_9-ar16678