Corn, soybean markets sink
BUFFALO, New York (Agriculture.com)--The CME Group farm markets continue to be pressured by favorable crop weather and traders unwinding long positions Monday.
At midsession, the Sept. futures corn contract is 8 cents lower at $4.68. The Dec. corn futures contract is trading 6 cents lower at $4.58. The Aug. soybean futures contract is trading 4 cents lower at $13.26; new-crop Nov. soybeans are trading 3 cents lower at $11.78. Sept. wheat futures are trading 16 cents lower at $6.44 per bushel. The Dec. soymeal futures are trading $3.60 per short ton lower at $350.60. The Dec. soyoil futures are trading 32 cents higher at $43.14.
In the outside markets, the NYMEX crude oil is 67 cents per barrel lower, the dollar is higher, and the Dow Jones Industrials are 39 points lower.
Ken Smithmier, The Hightower Report's grain analyst, says the farm markets are getting hurt by the funds.
"Funds continue to pile onto the short side of the corn market in what looks to be an attempt to establish mean reversion for prices. The breakdown in the Sept/Dec spread points negative along with the weather with good rainfall patterns for most, if not all, of the Corn Belt over the next five days," Smithmier says.
Funds still hold a sizeable soybean and meal long position, which leaves both at risk for additional downside into August, he says.
"Wheat was the biggest loser midday as traders unwind long wheat vs. short corn spreads," Smithmier says.