Corn, soybeans finish lower
DES MOINES, Iowa (Agriculture.com)--The CME Group corn, soybean and wheat markets settled lower Wednesday, pressured by more uncertainty about weather and profit-taking.
The Sep. corn futures contract closed 4 cents lower at $4.94 per bushel. Dec. corn futures contract finished 6 cents lower at $4.69. The Sep. soybean futures contract finished 37 cents lower at $13.97, new-crop Nov. soybeans closed 34 cents lower at $13.52. Dec. wheat futures finished 1 cent lower at $6.46 per bushel. The Dec. soymeal futures settled $16.20 per short ton lower at $422.70. The Dec. soyoil futures closed $0.26 lower at $43.93.
In the outside markets, the NYMEX crude oil is $1.58 per barrel lower, the dollar is lower and the Dow Jones Industrials are 98 points higher.
Mike North, First Capital Ag senior risk advisor, says the lower markets are a continuation of the weather uncertainty that has gripped the market for the past two weeks.
"Soybeans, where concern about yield is the greatest, lead the market from day to day. Traders continue to try to balance the tightening of the domestic balance sheet against a South American crop year that has grown year over year," North says.
North adds, "This, of course, is also being played out in an environment in which the fund position that had been record short is being unwound in an effort to pare the risk presented by the shrinking yield."
Corn remains a follower, he says.
"However, the inevitability of a substantial corn crop and it’s forthcoming harvest is beginning to weigh on prices and slowly separate itself from the soybean story. Yesterday was a prime example of that."
Tim Hannagan, Walsh Trading grain analyst, says funds are still taking profits.
"It’s the sixth consecutive week where we started higher on weather fears only to have funds take profits the next day. Funds can pay handsome bonuses on profits taken."
But the break in today's prices should be looked at as a buying opportunity, he says. "The 6 to 10 day weather outlook is hot and dry and next week's USDA Crop Report will be feared to be bullish lending to shorts buying out and new longs entering."