Grain markets end mostly lower
Profit-taking took its toll on the CME Group grain markets Monday. The corn and wheat prices were hit the hardest.
The Dec corn futures settled 9 cents lower at $5.12 3/4. The Nov. soybean contract ended 2 1/2 cents higher at $11.28 3/4. The Dec. wheat futures closed 13 1/4 cents lower at $7.06 1/2. The Dec. soyoil futures ended $0.08 points higher at $44.97. The Dec. soymeal futures contract settled $1.30 lower at $315.70 per short ton.
In the outside markets, the NYMEX crude oil is $0.03 per barrel higher, the dollar is higher, and the Dow Jones Industrials closed down 48 points.
Because of the ninth consecutive higher close Sunday night, that brought some profit-taking after the opening today, Tim Hannagan, PFGBest.com senior grain analyst says.
"Remember, we had 20 plus cent gains across the board Friday, so traders were fat with profits. We're on a schedual to pull back into mid-week. But, Tuesday could be a buying opportunity on any dip in prices, as Thursday, ahead of the open, we have the the USDA final wheat production report. That should be meaningless to the futures but the quarterly stocks report could be exciting. So, expect buying ahead of it."
Brian Basting, Advanced Trading Inc., says there will be a lot of volitility ahead of this week's gov't report and next week's crop report.
"Nonetheless, there are excellent opportunities for farmers to sell into this harvest rally. I would suggest a cash sale with a call option purchase. You can leave the upside open if you want, but certainly put a floor in place for downside protection."