Corn ends sharply lower
DES MOINES, Iowa (Agriculture.com)--A rainfall event in the western Corn Belt, along with trade rumors, dropped the CME Group corn, soybean and wheat markets Friday.
The July corn futures settled 22 cents lower at $5.79 1/2, while the Dec. contract finished 9 1/4 cents lower at $5.06 3/4. The July soybean contract closed 11 cents lower $13.75, while the Nov. 2012 contract closed 7 1/4 cents higher at $13.16. The July wheat futures ended 14 cents lower at $6.09 1/2. July soyoil futures settled $0.42 higher at $48.42. The July soymeal futures settled $6.20 lower at $410.30.
In the outside markets, the NYMEX crude oil is $0.23 per barrel higher, the dollar is lower and the Dow Jones Industrials are 84 points higher.
"Corn is getting hurt today, due to rumors that a U.S. "trade house" is going to import Brazilian corn into the U.S.," Alan Brugler, Brugler Marketing & Management LLC, says. "Obviously, if done in the old crop slot, it removes the tightness picture. New crop corn is a little weaker due to improved rains in the Western Corn Belt."
Meanwhile, cash basis levels continue to remain strong, Kevin McNew, Cashgrainbids.com says. "Current basis levels are 13 cents stronger than the five year average and 7 cents stronger than the maximum recorded new crop basis seen in the last five years during this time," he says.