Farm markets remain lower
CHICAGO, Illinois (Agriculture.com)--Weak demand, stronger U.S. Dollar sparked a sell-off, as the CME Group corn, soybean and wheat markets close the week lower Friday.
The March futures corn contract settled 9 cents lower at $6.80. The Jan. soybean futures contract closed 14 cents lower at $13.89. March wheat futures finished 8 cents lower at $7.47 per bushel. The Jan. soyoil futures contract finished $0.79 lower at $49.42. The Jan. soymeal futures contract finished $7.40 per short ton lower at $398.20.
In the outside markets, the NYMEX crude oil is $0.04 per barrel higher, the dollar is lower and the Dow Jones Industrials are 35 points higher.
Tim Hannagan, Alpari (U.S.) LLC, grain specialist says the markets are reacting negatively to the dismal weekly export figures.
"Perfect growing weather in South America to date has China and other countries slowing US purchases of corn and beans. Continuation of this good weather through mid-February looks to see US exports declined measurably, especially in beans as South America ports takeover world exports into May," Hannagan says.
Looking ahead, a short-covering rally could occur next week, ahead of the January 11 USDA Crop Production and Supply/Demand Reports, he says.
"Next week, we should expect trading to go from selling rallies on bearish demand markets this week to buying breaks on fear of a bullish crop report. On Monday we will get the pre-report trade estimates of the report based on an industry analyst poll. This tells us how the trade is positioned and their thoughts, bullish or bearish. It should lean bullish corn, neutral to bearish beans," Hannagan wrote in his weekly grain report Friday.