Corn hits 2 1/2 year low
DES MOINES, Iowa (Agriculture.com)--While the CME Group corn prices hit a 2 1/2 year low, soybeans fall 57 cents Tuesday.
The Sept. futures corn contract settled 18 cents lower at $5.22. New-crop Dec. corn futures settled 12 cents lower at $4.85. The Aug. soybean futures contract finished 57 cents lower at $14.62; new-crop Nov. soybeans ended 28 cents lower at $12.60. Sept. wheat futures settled 6 cents lower at $6.53 per bushel. The Dec. soyoil futures closed 63 cents lower at $44.68. The Dec. soymeal futures finished $9.10 per short ton lower at $380.80.
In the outside markets, the NYMEX crude oil is 9 cents per barrel higher, the dollar is lower, and the Dow Jones Industrials are 39 points higher.
Ken Smithmier, The Hightower Report market analyst, says that Monday's USDA Crop Progress Report, dropping conditions 3%, fell below market expectations.
"But the modest miss was more than offset with showers in some of the driest regions of the West. And this was enough to push the market lower from the opening bell overnight," Smithmier says.
He adds, "Weather forecasts appear nonthreatening, with cooler temperatures and the bearish technical charts will keep the trend down for corn."
Meanwhile, funds hold a hefty net short position, he says. "But it's rather small relative to historic long positions, which implies it may grow as long as there is no significant threat or story to force a massive liquidation move. We look for another round of strong end-user coverage when and if new lows in Dec corn are made."