Grains slide in 'nervous' trade
Corn, soybean and wheat futures all closed sharply higher Thursday, echoing the nerves in the bond and stock markets amidst a lot of lingering bearish economic forces.
Nearby corn finished Thursday 12 1/4 cents lower at $6.93 3/4 per bushel, while nearby soybeans were 27 1/2 cents lower at $13.36 1/4, according to Barchart.com. Nearby wheat futures sunk 28 3/4 cents per bushel to $6.81 3/4 per bushel.
There's a lot of volatility in the grains -- Thursday had more than usual, according to ag market analyst and ICAP Energy derivitaves manager in Chicago, Scott Shellady. And, with factors like bearish crop estimates earlier this week and macroeconomic factors like unemployment figures stepping on the stock and bond markets, Friday may see similar losses in the grains.
"I think that we could be in for some deep trouble...the feeling here is not a good one no matter what you trade...the bond room is frozen in the headlights of the stock sell off and we are watching liquidation to pay for other worse core holdings," Shellady said Thursday.
"I would say that without a doubt, the chatter is nervous about declining yields in both corn and beans. While my sources say there are not a lot of things to worry about YET...the trade continues to digest the slow drip of yield declines going into the USDA on the 11th," he adds. "We are also very worried about the validity of the report because the volatility of their information has been growing as well."