Farm markets continue to fall
DES MOINES, Iowa (Agriculture.com)--At mid-session, the CME Group soybean meal has hit 'limit' down, while soybeans and corn prices trade double-digits lower Thursday.
At mid-session, the Sept. futures corn contract is 14 cents lower at $4.94. New-crop Dec. corn futures are 4 cents lower at $4.76. The Aug. soybean futures contract is trading 29 cents lower at $13.63, new-crop Nov. soybeans are trading 36 cents lower at $12.22. Sept. wheat futures are trading 4 cents lower at $6.49 per bushel. The Dec. soymeal futures are trading $16.30 per short ton lower at $364.20, while old-crop August is down the $20.00 daily limit. Dec. soyoil futures are trading $0.24 lower at $43.87.
In the outside markets, the NYMEX crude oil is $0.09 per barrel higher, the dollar is lower and the Dow Jones Industrials are 67 points lower.
Mike North, Senior Risk Advisor for First Capital Ag, says the futures are responding to a cash collapse.
"Basis markets continue to collapse. Beans led the charge on Tuesday, as basis levels dropped more than a dollar from the evening before. Corn follows today, as cash bids drop 75 cents from yesterday along the river and among processors."
As the southern harvest progresses, weather concerns ease, and buyers comfort with existing supplies grows, prices are in jeopardy, he says.
"This will be led by old crop markets. Those spreads will be unwound and the premium in old crop prices will come into closer alignment with new crop values. It is the 'perfect storm' that grain producers have feared and buyers have hoped for," North says.