Corn closes lower
DES MOINES, Iowa (Agriculture.com)--With the market looking ahead at better corn planting weather, the CME Group corn market closed lower Wednesday.
The July futures corn contract settled 7 cents lower at $6.33. New-crop Dec. corn futures finished 7 cents lower at $5.32. The July soybean futures contract ended 8 cents higher at $13.90, new-crop Nov. soybeans settled 1 cent lower at $12.14. July wheat futures closed 3 cents lower at $7.06 per bushel. The July soymeal futures finished $4.30 per short ton higher at $407.60. The July soyoil futures ended $0.32 lower at $48.82.
In the outside markets, the NYMEX crude oil is $0.88 per barrel higher, the dollar is lower and the Dow Jones Industrials are 5 points higher.
Dustin Johnson, eHedger grain analyst, says the market is forward-pricing a rebound in the U.S. corn planting pace.
"There has been a lot of fear premium built into December corn. Early May is not too late to get it planted before yields really suffer. Plus, we have the first WASDE 2013 estimates coming out this Friday," Johnson says.
Traditionally, the USDA doesn't change their yield estimate very much from their February Ag Outlook, which this year was at 163.6 bu./acre, he says.
"Using a yield of 160 or more, for this report, means carryout will still be rather high on the estimates. My guess is the bulls don't want to carry their risk into Friday's report," he says.
Soybean support is coming from the May contract in delivery, as well as from the unwinding of the corn-bean ratio ahead of the report, Johnson says.