Corn remains sharply lower
DES MOINES, Iowa (Agriculture.com)--The high stocks noted in the USDA's March Report continues to heavily pressure the CME Group corn futures Monday.
At midsession, the May futures corn contract is trading down 42 cents at $6.52, while December corn is 7 cents lower at $5.31. The May soybean futures contract is trading 11 cents lower at $13.93, while November soybeans trade 2 cents higher at $12.53. May wheat futures are trading 16 cents lower at $6.71 per bushel. The May soymeal futures are trading $5.80 per short ton lower at $398.80. The May soyoil futures are trading 1 cent higher at $50.12.
In the outside markets, the NYMEX crude oil is $1.05 per barrel lower, the dollar is lower, and the Dow Jones Industrials are 28 points lower.
Jack Scoville, PRICE Futures Group, says this is follow-through speculative selling, today, with some spec buying and commercial buying reated to last Thursday's USDA stocks report.
The report brought a real change in attitude, he says. Thoughts of very tight supplies have changed to thoughts of a lot more supplies.
"It is still possible that we will be in a tight situation this fall, but this report implies that the situation will be much easier," Scoville says.
Today's markets are experiencing some buying in back-months, on spread liquidation. Plus, the cool weather that is keeping the fieldwork down is providing support for new-crop contracts, he says.
"Today or tomorrow should be about it for the move lower, for now," Scoville says. "Then, we can rebound a bit. But I doubt we can do too much to the upside, unless some new big demand shows up or some weather develops."
Meanwhile, the cash markets remain very strong, he says. "So, this will help limit the down side with the latest USDA reports serving as a good reason to look for limited rally potential," he says.