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Profit-taking sends grains to lower close

08/27/2013 @ 2:48pm

U.S. soybean futures halted their weeklong rally Tuesday, pressured by profit-taking after they surged to one-month highs a day earlier on worries about hot, dry weather in the Midwest.

Chicago Board of Trade September soybeans fell 13 3/4 cents, or 1%, to $14.14 a bushel, after jumping 4.6% on Monday.

Corn futures also retreated from a one-month high made in the spot grain contract Monday. September corn futures slid 16 cents, or 3.1%, to $4.99 3/4 a bushel.

Traders remain focused on forecasts for little moisture and above-average temperatures, including some around 100 degrees, across much of the Farm Belt for the next six to 10 days. Industry experts suspect unfavorable weather could cut yields for soybeans, which are undergoing key stages of growth and already have been hit by adverse weather in some states.

But marginally improved precipitation models for the week ahead pressured soybean prices into the close of trading Tuesday.

The National Weather Service shows above-average chances for rain in the next six to 10 days in northern Nebraska through northern Illinois, covering most of Indiana and Ohio. In the next five days, Iowa is expected to receive between 0.01 and 0.25 inch of rain, with the heavier showers concentrated in the northeast. A tenth of an inch of rainfall is forecast for the next week in Illinois, the nation's top soybean producer, with up to a quarter inch in the southeastern corner through Indiana.

Although that's relatively little moisture, "every little bit helps for the beans," said Doug Bartlett, a marketing consultant with brokerage Midwest Farm Services in Higginsville, Mo. "People are being cautious, and are quick to take profits to get out of harm's way. If additional forecasts keep improving, people will get rid of some of these" long positions, or bullish bets on prices.

Soybeans have been known in the past to show resilience to stressful weather late in their growing season. Last year's crop, for example, benefited from rain in September, mitigating the impact of the country's worst drought in decades.


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mark guildenzoph 08/28/2013 @ 9:51am I don't understand who and why are you guys letting these yahoo's take profits and cut the prices down it's not like the weather is getting better, or your so called record crop is coming, so why let these greedy personal traders get away with this Why is there no law against this there is no reason for this except money should be highly illegal.

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mark guildenzoph 08/28/2013 @ 9:51am I don't understand who and why are you guys letting these yahoo's take profits and cut the prices down it's not like the weather is getting better, or your so called record crop is coming, so why let these greedy personal traders get away with this Why is there no law against this there is no reason for this except money should be highly illegal.

Report Abuse Reply
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