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Corn hits 2 1/2 year low

07/23/2013 @ 8:55am

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."

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thank you 07/24/2013 @ 8:39am Thanks for what you do, Mike. We don't always agree but the more information the better. It's good to have someone on the floor with farm experience. You know what we have to deal with outside of Chicago. However, if the market continues to slide isn't it time for your summer vacation? Maybe the B team should be given the chance to bring the market back.

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thank you 07/24/2013 @ 8:39am Thanks for what you do, Mike. We don't always agree but the more information the better. It's good to have someone on the floor with farm experience. You know what we have to deal with outside of Chicago. However, if the market continues to slide isn't it time for your summer vacation? Maybe the B team should be given the chance to bring the market back.

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Markets 07/23/2013 @ 9:40pm I know exactly what Chad is talking about. Maybe not your report Mike, but all the other reports about "fortune telling". Makes you wonder who all has e-trade accounts including USDA people. Corn is now below the cost of production here in irrigation country. Might take a year off, better than losing money again. No Farm No Food!!!

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Re: Re: Markets 07/24/2013 @ 8:27am These traders could care less if the farmers loose money or go bankrupt like I said its not their livelihood.

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Wow 07/23/2013 @ 3:30pm Calling you people idiots at this point is a compliment. I love how you can try to justify knocking prices down,I've said this before and i'll say it again,I don't understand how you people can go home at night and say yep we did good today but when your messing with someone else's livelihood it's pretty easy I'm sure.

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Re: Re: Wow 07/23/2013 @ 5:09pm I don't need to be informed by anyone who is not out in the fields and is not living the day to day duties of a farmer,anyone can sit and read reports and go off of a computers long range forecast or listen to the USDA until you walk in our shoes then I might listen what you have to say.

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