Grain markets close weak
CHICAGO, Illinois (Agriculture.com)--As they traded all session, the CME Group grain markets closed lower, with the wheat market taking the brunt of the damage Tuesday.
The March corn futures settled 1 1/4 cents lower at $5.87 1/4. The Jan. soybean contract settled 6 1/4 cents lower at $12.96. The March wheat futures ended 17 cents lower at $7.63 1/4. January soybean meal futures finished $0.60 per short ton lower at $342.20. The Jan. soyoil futures contract closed $0.36 lower at $55.09.
In the outside markets, the NYMEX crude oil is $0.25 per barrel lower, the dollar is lower, and the Dow Jones Industrials are up 62 points.
Jack Scoville, PRICE Futures Group vice-president, says liquidation ruled the day. "Wheat still reacting to better weather in Australia and I guess the Middle East, but mostly liquidation selling. Corn and soybeans seemed to be more of a choppy affair. I think mostly liquidation selling in those markets, but both held well."
Scoville adds, "Both markets are trying to show a breakout higher and so they held better than wheat. Soybeans look like they are completing a bull flag and corn broke some pretty strong resistance at about $5.75, basis the March yesterday. So, we saw more even-sided spec interest there."
There have been some marketwatchers that believe the commodities are going back to trading fundamentals, less outside market influence. In fact, today, the outside markets have turned from unfavorable to favorable for grain prices. But, still no change in price direction for the markets. Perhaps, the 'outsides' and the grains are decoupling Tuesday.