Grains head into Friday lower
Spurred along by mammoth export sales and renewed fears that frost is going to rob this year's crops of full yield potential, the grain markets exploded on Thursday. Heading into Friday's session, it appears traders took profits from Thursday's climb, leading to a slightly lower outlook for corn and soybean prices.
In overnight trading, December corn was 3 1/4 lower at $4.69 per bushel, November soybeans were 3 3/4 lower at $12.61 3/4, and December wheat was 1 1/4 lower at $6.48 1/4.
Exports aside, the market is starting to take a "weather market" tone, and that could be the case through to harvest, says Agriculture.com market analyst and trader Scott Shellady.
"We may have corn up for the week for the first time in a month. We are back to a weather market with a lingering threat of less acres. Only time will tell, but our fields could use a little rain," he says Friday morning.
Fundamentally, another variable that shot the grains higher Thursday was USDA-FSA's announcement that fewer corn acres were planted this spring than originally thought. And since that directly affects the supply of grain going into the pipeline this fall, it's likely a bullish factor for a while, says Cory Bratland, trader and analyst with Kluis Commodities.
"I think with the FSA announcement of the amount of corn acres that were prevent-planted this year, we will likely see the USDA lower the total corn acres planted in future reports," Bratland says. "I am watching to see if December corn futures can trade and close above resistance of $4.80."