Soybeans Close 19¢ Lower
DES MOINES, Iowa (Agriculture.com)--On Friday, the CME Group soybean market traded lower, still digesting the news that China cancelled shipments from the U.S. and Brazil.
The May corn futures contract settled 2 3/4 cents lower at $4.98. The Dec. corn futures ended 5 3/4 cents lower at $4.99. The May soybean futures contract is 17 1/4 cents lower at $14.65. The Nov. soybean futures are trading 10 cents lower at $12.15. May wheat futures are 3 1/2 cents higher at $6.65 per bushel. The May soymeal futures contract is trading $6.60 per short ton lower at $472.90. The May soyoil futures are trading $0.40 lower at $42.10.
In the outside markets, the crude oil is $0.60 per barrel higher, the dollar is lower and the Dow Jones Industrials are 148 points lower.
Jack Scoville, PRICE Futures Group vice-president, says the pressure of the soybean market is at the feet of the Chinese.
"Soybeans fell on the cancellations from China. Reuters is saying 500,000 in sales confirmed cancelled between Brazil and the US and says the total could go up. I have heard up to a million both countries so far," Scoville says.
Given how long the market is on supply tightness, some selling should be expected, he says.
"I expect more as this story develops, as we move to ensure at least adequate supplies. Not a surplus, but a few more beans than before and that seems to be kind of a trend in the market talk now. A bit more here and there and we will make it," Scoville says.
Though it finished lower too, corn held losses to a minimum, he says.
"I suppose some spreads against beans and wheat there and also uncertain weather for the coming couple of weeks. One model shows cool and wet and the other warmer and drier. We need warmer and drier," he says.
Wheat is still a weather market. "The wheat market, though lower today, is supported by the dry weather in the western Plains that does not seem to go away. Overall, trends for wheat appear lower, but today people are covering some shorts," he says.