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Grains slide in 'nervous' trade

Jeff Caldwell 08/04/2011 @ 3:23pm Agricultural content creator and marketer.

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."

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08/04/2011 @ 6:10pm I'm not just looking out my window I'm talking facts of from many states of bad crop conditions also china is buying more corn which they have said their imports will be up from last year and the fact USDA numbers of acres is not true any other question?

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Re: Re: 08/04/2011 @ 9:21pm I did look it up I did the research so yes it's a fact nice try though.

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Re: Re: 08/04/2011 @ 8:18pm Yes, I have another question. How do you know the USDA numbers are not correct? You say it's a fact, but the real fact is it's only your opinion. As far as China, they are shrewd buyers and will probably not buy much corn at $7 or above, and that's a fact!

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Dumb 08/04/2011 @ 5:49pm You people on the floor can try too turn this around any way you want because your going too any way again cbot is contradicting itself corn goes up the limit 2 days ago because of heat and yield concerns today way down so what poof everything got fixed in two days the crop is perfect no worries get a clue.

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Re: Re: Dumb 08/04/2011 @ 6:05pm I am not sure what you think is dumb, there is more to a market than just how good the crop looks out your window. Markets move, and they move for various reasons. The law of supply and demand is a very complicated one.

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