Rain drops farm markets
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.