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Corn closes 'limit' down

04/28/2011 @ 9:37am

CHICAGO, Illinois (Agriculture.com)--The CME Group corn market closed limit down on improved planting weather outlooks Thursday.

The July corn futures settled down the 30 cent 'limit' at $7.29 1/4. The contract traded around $7.24, synthetically.  The July soybean contract closed 31 cents lower at $13.53 1/2. The July wheat futures closed 34 1/2 cents lower at $7.76. The July soybean meal futures settled $7.60 per short ton lower at $354.20. The July soyoil futures closed $1.48 lower at $56.93.

In the outside markets, the NYMEX crude oil is $0.10 per barrel higher, the dollar is lower and the Dow Jones Industrials are up 36 points. Since 1980, silver hit a new record price of $50.

"As I said yesterday, with exact scenario today, we left technical gap areas below and the first one was $7.49," one CME Group corn pit trader says. But, I believe it's merely about healthy corrections. Otherwise, the market is still bullish long term."
Tim Hannagan, PFGBest.com senior grain analyst, says corn, wheat and beans continue to remove the recent weather premium, as this last system is now over and there's not another appreciable rain until next Thursday now. "This has the trade thinking some spring wheat and corn could be planted early next week in the upper Plains. But, even if planting occurs, heavy rains enter on May 6 & 7 and then again May 11 & 12, leaving us generally well behind on planting," Hannagan says.
Rich Feltes, RJ O'Brien market analyst, says, weather concerns don't stop after planting. "The market is still going to be hanging on the edge needing to know the crops will be getting timely precipitation in the absence of summer heat. For that matter, for the late planted areas, we will need later than normal frostings. And we won't know that for months," Feltes says.


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