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Corn closes down 24¢

Updated: 05/06/2013 @ 2:28pm

DES MOINES, Iowa (Agriculture.com)--Favorable weather and fewer buyers push the CME Group corn, soybean and wheat markets to settle lower Monday.

The July futures corn contract closed 24 cents lower at $6.36. New-crop Dec. futures finished 15 cents lower at $5.38. The July soybean futures contract settled 18 cents lower at $13.69, new-crop Nov. soybeans settled 14 cents lower at $12.07. July wheat futures settled 18 cents lower at $7.02 per bushel. The July soymeal futures closed $5.30 per short ton lower at $401.20. The July soyoil futures finished $0.51 lower at $48.76.
In the outside markets, the NYMEX crude oil is $0.31 per barrel higher, the dollar is higher and the Dow Jones Industrials are 12 points higher.

Jack Scoville, PRICE Futures Group vice president, says the lower markets have all to do with weather.  

"Soybeans not dropping as much as corn on the better planting weather, because the market thinks the acreage switches will be minimal if at all," Scoville says. I think that is probably about right."

This afternoon's USDA Weekly Crop Progress Report is expected to show 15% of U.S. corn and 4% of U.S. soybeans to be planted, he says. 

The forecast call for cooler and wetter conditions later this week, but not the big storms of last week. "So, there will still be some progress in some areas.  Wheat is down, as what damage is done is done. The weather is getting better out in the Plains states. So, we will have whatever crop is out there," Scoville says.  

Overall, it's kind of a buy the rumor and sell the fact trading day.  Speculators have been active sellers, for sure. "I'm not seeing much commercial buying interest at all, although I am sure there is some," he says.

Mike North, First Capitol Ag senior analyst, says the market's lower trading is simply a function of weather premium coming out of the market.  

"Short covering is what drove the market higher. In the absence of both rain and new buyers in the short run, the market is subject to such breaks, " North says. 

The charts for new crop corn continue to walk along the same channel lines that have been governing the chart since early February, he says.  "With no change in forecasts we are subject to further break downs, with potential lows on December corn in the neighborhood of $5.10 and rebounds never quite reaching their previous highs…perhaps $5.50," North says.  

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