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Profit-taking sinks corn

04/20/2011 @ 9:40am

CHICAGO, Illinois (Agriculture.com)--Profit-taking closed the CME Group corn and wheat markets lower Wednesday.

The July corn futures settled 16 1/2 cents lower at $7.40 1/2. The July soybean contract ended 15 1/4 cents higher at $13.69 1/4. The July wheat futures settled 1/4 of a cent lower at $8.20 3/4. The July soybean meal futures settled $2.70 per short ton higher at $354.60. The July soyoil futures settled $0.63 higher at $58.79.
In the outside markets, the NYMEX crude oil is $3.18 per barrel higher, the dollar is lower and the Dow Jones Industrials are up 181 points.

Profit-taking set in as the traders look ahead to a shortened week. On Friday, the CME Group grain markets will be closed.

Jack Scoville, PRICE Futures Group vice-president, says today's early, higher markets reflects in-part poor crop-weather and in-part the Dollar.  

"It looks like the dollar might have started a new leg down to give a hard test of the bottoming range from 2008. So, that should tend to keep the markets we are interested in with some support," Scoville says.  

The weather is the rest of the story and the weather is not good here or really anywhere, he says.  "Any changes in these two factors will start to make the markets weaker longer term. But, markets should find support until or if those events happen. There could be some profit-taking tomorrow, though.  I am trying to sell a little higher today with that idea in mind," Scoville says.

Meanwhile, a CME Group floor trader says the market sentiment is bullish. "Yes kind of has that same feeling here. In corn, there was a trend-line break to upside with possible $7.85 objective. That may still go before retreating. If we do get below $7.65, the market could sell off a little. But, still overall we're bullish."

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