Farm markets end mostly lower
DES MOINES, Iowa (Agriculture.com)--After starting higher, the CME Group corn, soybean and wheat markets settled mostly lower Friday.
The Dec. corn futures are settled 7 cents lower at $6.38 1/2. The Jan. soybean contract closed 8 cents higher at $11.75 1/2. Dec. wheat futures closed 3 1/4 cents lower at $6.16 3/4. The Dec. soymeal futures settled $1.60 per short ton higher at $299.50. The Dec. soyoil futures closed $0.46 higher at $50.98.
In the outside markets, the NYMEX crude oil is $1.23 per barrel higher, the dollar is lower and the Dow Jones Industrials are up 241 points.
Dustin Johnson, EHedger market analyst, says the markets remained pressured by Thursday's weak export sales and new private firm acreage estimates.
Informa Economics, a private analyst firm, released new estimates for 2012 U.S. plantings. The U.S. farmers will plant 94 million corn acres, up 1% from the firms previous estimate. For soybeans, 76.1 million acres is expected to be planted, and 57 million wheat acres.
"Informa came out today with bearish estimates. I think the sell-off occurred, due to the trade expecting higher corn acres," Johnson says.
The December 2012 corn is taking the biggest hit, he says. "This may be spreaders exiting their long corn, short beans trades. I can't tell you how many people have told me they are bullish corn, bearish beans in the last few weeks, and this may be them unwinding those spreads."