Home / Markets / Markets Analysis / Corn market / Rain drops farm markets

Rain drops farm markets

02/21/2012 @ 9:35am

DES MOINES, Iowa (Agriculture.com)--Due to improved rainfall in South America, the CME Group corn and wheat markets closed sharply lower Tuesday.

The March corn futures close 12 1/4 cents lower at $6.29 1/2. The March soybean contract finished 3 cents higher at $12.71. The March wheat futures settled 11 cents lower at $6.33.  The March soymeal futures finished $2.30 per short ton lower at $330.20. The March soyoil futures closed $0.66 higher at $54.06.
In the outside markets, the NYMEX crude oil is $2.64 per barrel higher, the dollar is higher and the Dow Jones Industrials are down 7 points.

Tim Hannagan, PFGBest.com senior grain analyst, says the market is pricing in favorable South American weather.

"After finishing the week at their highs last week, we come in today and priced in the weather in South America first. Rains in the driest areas of Argentina and southern Brazil were very good. More rain today and possibly late week takes much of last week's drought rally out," Hannagan says. 

Putting a floor under the break is the strength in outside markets, he says. 

"But, grains will get to trading that later in the session and Tuesday. Pricing rain or no rain is always how we start the week," he says.


CancelPost Comment

Funny 02/21/2012 @ 10:47am So funny how obvious it is that there is a bull market and yet the cbot finds ways to keep prices down.

Report Abuse Reply
MORE FROM MIKE MCGINNIS more +

Soybeans End 23¢ Lower By: 08/01/2014 @ 8:56am DES MOINES, Iowa (Agriculture.com)--On Friday, the CME Group's soybean markets finish under…

Farm Markets Seen Mostly Lower Friday By: 08/01/2014 @ 6:45am On Friday, the CME Group's corn, soybean and wheat markets are expected to start mostly…

Soybean, Wheat Prices Close Higher By: 07/31/2014 @ 8:35am DES MOINES, Iowa (Agriculture.com)-- The CME Group soybean and wheat markets end higher, corn lower…

MEDIA CENTERmore +
This container should display a .swf file. If not, you may need to upgrade your Flash player.
Rain Drains Grain Markets