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Harvest yields weigh on corn, soybeans

10/11/2013 @ 8:38am

DES MOINES, Iowa (Agriculture.com)--The harvest pressure is rearing its ugly head, sending CME Group corn, soybean markets lower Friday.


The Dec. corn futures contract settled 5 cents lower at $4.33. The Nov. soybean futures contract closed 21 cents lower at $12.66. Dec. wheat futures closed 6 3/4 cents higher at $6.92 per bushel. The Dec. soymeal futures settled $6.20 per short ton lower at $403.40.

The Dec. soyoil futures ended $0.94 lower at $40.28. 


In the outside markets, the NYMEX crude oil is $0.64 per barrel lower, the dollar is lower, and the Dow Jones Industrials are 71 points higher.


Mike North, senior risk adviser for First Capital Ag, says that in the void of news created by the government shutdown, markets are trading two things: combine reports and charts. 

 

"Combine reports continue to reveal, even in the areas thought to be traumatic, better to much better yields than were expected. This will go a long way toward justifying the higher migration of private analyst yields in recent days," North says.

  

North adds, "Do not be surprised by coming analysis of 160 yields. Big crops get bigger, and this year appears to fall into this category."


In conjunction with this news, the rumor of a potential scaleback of the Renewable Fuel Standard in coming years has the market on the defensive, he says.

  

"We will see how the EPA weighs in on this upon their return to work. Charts have also broken down as corn made new lows, violating recent support near $4.40, North says.  

"Soybeans have similarly turned lower with the Sept 30/Oct 1 low as the target. Even without the October report release, the market appears to be developing its own balance sheet . . . and it isn’t friendly," North says.

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10/11/2013 @ 8:43am We all know when the USDA come back online everything will be bearish so you can keep these prices down. How long you traders gonna ignore the horrible yeilds in ia,il,parts of mn and sd or dont those states count this year?

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Wendy Hilliard Re: Re: 10/11/2013 @ 1:39pm I've seen some of the best yields we've had and some yields as bad as last year. It's extremely variable. We had a lot of rain....corn drowned out in places, nitrogen loss, and we got a hot snap right about pollination time. It all depends on when it was planted.

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