Corn closes mixed, soy lower
CHICAGO, Illinois (Agriculture.com)--After a falling crude oil market, the CME Group soybean prices tumbled lower, dragging corn and wheat with it Friday.
The July corn futures settled 1 1/4 cents lower at $7.00 1/4, while Dec. corn closed 7 cents higher at $6.60. The July soybean contract ended 17 1/2 cents lower at $13.33. The Sep. wheat futures settled 1/4 of a cent lower at $7.08. The July soybean meal futures settled $4.70 per short ton lower at $349.00 and July soyoil futures closed $0.40 lower at $55.92.
In the outside markets, the NYMEX crude oil is $2.02 per barrel lower, the dollar is lower and the Dow Jones Industrials are up 71 points.
After setting an all-time high record of $7.99 last Friday, the July corn futures price dropped nearly $1.00 in a week. The blame for the sharp drop is being put upon funds, or outside investors, as they decided to exit the commodities markets, says Joe Bedore, FC Stone Inc.'s CME Group floor manager.
"I'm not talking about the billion dollar index funds. Rather, the funds that trade millions of dollars of corn contracts simply said get me out," Bedore says. "These are the guys that run anywhere from 3,000-5,000 contracts per day."
Bedore adds, "I don't think these fund investors got out at losses. But, when they saw they gave up 50-cents and then 60-cents, they simply wanted out. So, they liquidated their positions. Friday was milder, as far as liquidation, due to liquidation needs had already been met."
Next week, if the grain market can start a rally, it could signal the funds were able to get out of all of their long positions. "At that point, any rally would be backed by fundamentals, of which he haven't been trading lately," Bedore says.
With this week's market trading solely on technicals, the focus could turn to weather, supply/demand, and acreage amounts, traders say.