Farm Markets Seen Fading Wednesday
On Wednesday, the CME Group's corn, soybean, and wheat markets are seen lower.
The early calls for the commodities on Wednesday, March 26, 2014, are lower. Corn is seen opening 2 to 4 cents lower, soybeans 5 to 7 cents lower, and wheat 5 to 7 cents lower.
In overnight trading, the May corn futures contract traded 2 3/4 cents lower at $4.83 per bushel. May soybean futures traded 5 1/4 cents lower at $14.22. The May wheat futures contract traded 5 1/2 cents lower at $7.02. For May soybean meal futures, the contract traded $1.90 per short ton higher at $461.80; May soybean oil futures traded $0.11 higher at $40.85.
The outside markets are unfavorable for Wednesday's grain trade. The real factors driving the calls will be the lower overnight markets.
Jeff Coleman, The Trean Group analyst, says traders are waiting on the sidelines for more news to trade.
"Corn futures are lower, overnight, and have been in a tight range this week, with little news to move the corn markets. Traders seem to be waiting on the sidelines until Monday, with only export sales due out tomorrow likely to elicit any movement in the futures. The May contract keeps testing resistance up around $4.89 to $4.90 and can’t seem to break out and hold above there after trading above the $5 level less than two weeks ago," Coleman says.
After trading a nickel higher early in the overnight session, May soybean futures are lower, as yesterday’s weak close to the soybean complex left little reason for traders to be bullish last night. "The CME Group reported that soybean volume was a whopping 31% lower yesterday with open interest up a paltry 736 contracts, as the funds seem to be waiting until Monday to jump back into the markets," he says.
Wheat futures are following the other grain markets lower and are trading a nickel to the downside this morning, Coleman says.