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Old soybeans end limit-down

07/24/2013 @ 9:16am

DES MOINES, Iowa (Agriculture.com)--The CME Group soybean market hit its daily limit low price level, pulling corn and wheat down with it Wednesday.

The Sept. futures corn contract settled 14 cents lower at $5.08. New-crop Dec. corn futures closed 5 cent lower at $4.80. The Aug. soybean futures contract finished 70 cents lower at $13.92, new-crop Nov. soybeans finished 3 cents lower at $12.56. Sept. wheat futures closed 1 cent lower at $6.53 per bushel. The Dec. soyoil futures finished $.57 lower at $44.11. The Dec. soymeal futures settled $0.30 per short ton lower at $380.50.

In the outside markets, the NYMEX crude oil is $0.09 per barrel higher, the dollar is higher and the Dow Jones Industrials are 53 points lower.

Jack Scoville, PRICE Futures Group vice president, says that it looks like corn and soybeans are moving lower as farmers seem to like the condition of the crops.  

"The weather is good. So, at least some bins are getting emptied out and the old crop is in total collapse right now, or was anyway.  I think spreads are supporting the new crop as much as anything, as old crop-new crop spreads get liquidated.  

There is not much demand news, except in world wheat where North Africa, Egypt and Algeria, were buying overnight with good volumes.  

"It's been quiet here today, kind of weird considering the price action," Scoville says.  

New crop will continue to drift lower on the weather over time, he says.  "We still need a late Fall. But, if we get one we could have some big crops this year.  We have seen this type of old crop collapse before. The bulls, or the buyers, will need to get after it now if they want prices to move higher again.  I am thinking that most of the old crop demand is getting priced out.  Once the old crop buying by end users gets to new crop, watch out below!"  

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Weather Trumps Demand