Corn, soybeans close lower
DES MOINES, Iowa (Agriculture.com)--The CME Group corn, soybean and wheat markets finished down, fighting weather that is allowing for a rapid corn planting pace Tuesday.
The July corn futures settle 5 1/4 cents lower at $6.29. The July soybean contract ended 2 cents lower $15.03 1/2. The July wheat futures closed 11 1/2 cents lower at $6.43. The July soymeal futures finished $1.30 per short ton lower at $434.20 and July soyoil futures finished down $0.14 at $54.91.
In the outside markets, the NYMEX crude oil is $1.39 per barrel higher, the dollar is higher and the Dow Jones Industrials are up 106 points.
U.S. weather, early wheat harvest, and soybean deliveries are pressuring the farm markets today, one CME Group floor trader, requesting anonymity, says.
"Bean deliveries, on the May contract, were larger than expected this week and were not stopped yesterday. So, they recirculated today, giving the market some pause. But, also it is the time of year for indexes to roll old crop positions to new crop contracts. That should increase in intensity as we get to June 1, which is official roll date for Goldman index replicators and others," the floor trader says.
Traders are looking ahead to next week's USDA Supply/Demand Report that is expected to show record-tight new crop supplies. This would be friendly for the new-crop prices, he says.
Month-end rebalancing is having a negative affect on soymeal and soybeans. "This should bring in some index fund selling on the close," the CME Group floor trader says.
Favorable crop-weather is keeping a lid on market gains, he says. "Warm weather is good for early corn start. It's also good for germination."