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Corn, soybeans close lower

Updated: 11/01/2013 @ 2:20pm

DES MOINES, Iowa (Agriculture.com)--Ultimately, the CME Group's corn, soybean and wheat markets reacted negatively, finishing lower, to a new crop estimate that raises the U.S. 2013 crop production to new highs.

At the close, the Dec. corn futures contract settled 1 cent lower at $4.27. The Nov. soybean futures contract closed 14 cents lower at $12.66. Dec. wheat futures ended 1/4 of a cent higher at $6.67 per bushel. The Dec. soymeal futures contract finished $8.70per short ton lower at $394.90. The Dec. soyoil futures settled $0.26 higher at $41.59.

In the outside markets, the NYMEX crude oil is $1.71 per barrel lower, the dollar is higher and the Dow Jones Industrials are 51 points higher.

Informa, a private analyst firm, estimates U.S. corn production at 14.22 billion bushels with a nation averge yield of 161.2 bu./acre.

For soybeans, the firm sees the U.s. crop at 3.29 billion bushes with a national average yield of 43.3 bu./acre.

"They (estimates) are bearish, but the marke tneeds a 42-43 bu./acre bean yield to satisfy demand. And, I think corn could be 165 not 161 bu./acre," one CME Group floor trader says.

Jack Scoville, PRICE Futures Group vice-president, says corn and soybeans are down on clearing weather for the harvest and no big new demand news.  "The reaction to the big sales yesterday was a big disappointment for the bulls, and now we are making new lows. So, some tech selling getting in there as well.  

The Informa crop estimates are bearish especially beans, Scoville says.  "Not a super high volume affair, but we are seeing more and more that the production is out there. So, there will be less concern about demand.  The problem is the beans demand especially is front loaded and the boys are not selling too much. So, spreads will stay narrow and basis should stay strong even with big production. But futures will struggle."

Wheat is higher on short covering before the weekend, Scoville says. "It has already been beaten up pretty good this week and I think some bears are closing out and taking some cash home, nothing more.  No fundamental out there to support wheat that I can see."


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