Corn, soybean markets tank
DES MOINES, Iowa (Agriculture.com)--Ending lower, the CME Group corn, soybean and wheat markets took a hit from a broad-based commodities sell-off and unfriendly corn data in the USDA/WASDE Reports Tuesday.
The July corn futures settled 15 1/2 cents lower at $6.25 3/4, while the Dec. corn futures settled 6 3/4 cents lower at $5.43 1/4. The May soybean contract price hit a 7-month high. The July soybean contract settled 7 1/2 cents lower at $14.27 1/4. The July wheat futures closed 17 cents lower at $6.32. The July soymeal futures finished $0.30 per short ton higher at $391.40. The July soyoil futures settled $0.25 higher at $57.35.
In the outside markets, the NYMEX crude oil is $1.63 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 203 points.
Joe Bedore, FC Stone's CME Group trading floor manager says the markets finally realized the USDA Reports were bearish for corn and wheat. "With no change of how much corn we end the marketing year with, which is what the USDA says, that is not accepted very well.
"The soybeans tried to rally at mid-day. But, the market hit that magic $14.50 price and then selling came to the pit, buying had reached a vacuum, and boom! The market dropped 15 cents. And on the close, nobody wanted to buy and so we took it further down," Bedore says.
The trade is now watching to see if corn is starting a trend lower. "If corn gets below the $6.25 level, I see it breaking 30, 40, or 50 more cents. Right now, I see us stuck in this rangebound pattern," Bedore says.
Going forward, the trade is expected to track the U.S. planting weather and demand.
Jack Scoville, PRICE Futures Group vice president, says profit-taking in the beans after the numbers today.
"The report today was bullish, but not a bullish shock and with the grains very soft it looks like beans are finally taking the gas. Seems to be spec- selling, as my farmers and commercials are quiet," Scoville says.
Corn is seeing spec-selling not only from the US unchanged ending stocks, but Brazil's CONAB agency increased corn production in that country and Chinese farmers planting lots and lots of corn, Scoville says.
"Wheat should be better, but no big freeze in the Plains. So, no real reason to get real excited, I guess. It is the big mystery to me," Scoville says.