Corn ends lower on profit-taking
DES MOINES, Iowa (Agriculture.com)--The CME Group corn market settled lower due to profit-taking, while wheat ended higher on crop worries Tuesday.
The July futures corn contract settled 9 cents lower at $6.50. The July soybean futures contract finished 9 cents lower at $13.99. July wheat futures closed 14 cents higher at $7.31 per bushel. The July soymeal futures closed $1.90 per short ton lower at $414.50. The July soyoil futures finished $0.29 lower at $49.22.
In the outside markets, the NYMEX crude oil is $0.90 per barrel lower, the dollar is lower and the Dow Jones Industrials are 5 points lower.
Mike North, First Capital Ag senior risk management advisor is not surprised the corn market is giving back gains from Monday's 'limit' up trading.
"Let's look at the rally for what it is. It was built around a forecast. We still, at the end of the day, haven't crossed over into the May calendar. Yes, the planting progress rate is much lower than the trade thought. But, at the end of the day, the market rally could be short-lived because of the farmers' ability to catch up and plant so fast," North says.
A few more weeks need to go by before the market gets too excited about this planting delay picture, he says.
"For instance, in the Wisconsin area, everyone has different conditions, and some guys will have the chance to get in the field while others won't. So, I think some traders will be stand-offish and not pumping a whole lot of money into this rally," North says.
All we really have done is bring the corn market back to where we were before the USDA Quarterly Stocks Report, he says. T"he market has gone back to a spot that it is comfortable with."
For corn, we are up against a resistance level. Technically, there is a little more room for upside potential. But, that is limited, North says.