Corn, soybean markets end lower
DES MOINES, Iowa (Agriculture.com)--After starting higher, the CME Group corn, soybean and wheat markets closed lower Wednesday.
The March futures corn contract settled 7 cents lower at $6.90. The Jan. soybean futures contract finished 13 cents lower at $14.05. March wheat futures ended 22 cents lower at $7.55 per bushel. The Jan. soyoil futures contract closed $1.36 higher at $50.52. The Jan. soymeal futures contract closed $13.50 per short ton lower at $407.10.
In the outside markets, the NYMEX crude oil is $1.04 per barrel higher, the dollar is higher and the Dow Jones Industrials are 260 points higher.
Tim Hannagan, Alpari (U.S.) LLC grain specialist, says the favorable South American crop-weather trumped the fiscal cliff agreement.
"The initial rally came on the news that the fiscal cliff tragedy was off the back of the grain market. So, those holding short positions on its failure bought back those positions on the opening," Hannagan says. The opening rally of 10 cents on corn, 25 on beans and 11 for wheat seems a little sharp, he says. "But, note that the markets were closed Tuesday and electronic trade did not open until the pit trade began at 9;30 central time. This had two days of pent up buying hit all at once." Hannagan adds, "The selloff came as traders still see a "sell the rally" theme off a weakening demand pace for grains, as weather remains good for South American crops."