Corn Closes Lower for 8th Session in a Row
DES MOINES, Iowa (Agriculture.com)--On Thursday, the CME Group corn market closed lower for an eighth session in a row.
At the close, the Dec. corn futures closed 5 1/4 cents lower at $3.92. Nov. soybean futures settled 10 3/4 cents lower at $10.93. Sep. wheat futures finished 2 3/4 cents lower at $5.48. The Dec. soymeal futures contract closed $5.40 per short ton lower at $349.80. The Dec. soyoil futures finished $0.30 higher at $37.60.
In the outside markets, the NYMEX Brent crude oil is $0.59 per barrel higher, the dollar is higher, and the Dow Jones Industrials are 68 points lower.
Matt Connelly, Futures International floor trader at the CME Group, says the markets are lower for a number of fundamental reasons. "Basically, it feels like corn is made, and the U of I yield of 173.6 bushels per acre is possible. That should give you $3.50 Dec. corn prices," Connelly says.
Beans have more weather to trade, but if we stay like this, $10 beans or lower can happen, Connelly says. "Ethanol margins are great, which could give corn some support down the road. For the soybean market, the wild card is China. Do they increase demand on lower board prices or will it be status quo? Plus, I think the soybean carryout will triple this year," he says.