Rally followed by lower grain close
DES MOINES, Iowa (Agriculture.com)--After a sharp rally yesterday, the CME Group corn, soybean, and wheat markets closed lower from profit-taking Tuesday.
The Sep. corn futures settled 16 cents lower at $4.99 per bushel. The Dec. corn futures contract is trading 14 cents lower at $4.86. The Sep. soybean futures contract finished 13 cents lower at $14.14, and new-crop Nov. soybeans settled 19 cents lower at $13.70. Dec. wheat futures closed 3 cents lower at $6.63 per bushel. The Dec. soymeal futures finished $6.30 per short ton lower at $430.40. The Dec. soyoil futures closed $0.36 lower at $44.52.
In the outside markets, the NYMEX crude oil is $3.08 per barrel higher, the dollar is lower, and the Dow Jones Industrials are 144 points lower.
Tim Hannagan, Walsh Trading Inc. grain analyst, says the traders priced in the week's hot weather Sunday/Monday then slight gains overnight on lower crop ratings.
"But funds look to sell rallies on three issues this week. One, month-end profit taking allows bonuses to be taken if profits are taken before the month ends. Two, funds will not leave money sitting on the table ahead of a three-day holiday, and three, there's a chance for rain when we return from the holiday," Hannagan says.