Soybean market closes sharply lower
DES MOINES, Iowa (Agriculture.com)--Allready digested export sales, left the CME Group corn, soybean and wheat markets with little fresh news to trade Thursday.
The July corn futures settled 1 cent higher at $6.12 1/2. The July soybean contract closed 11 3/4 cents lower $14.73 1/2. The July wheat futures finished 1/4 of a cent higher at $6.14 3/4.
In the outside markets, the NYMEX crude oil is $2.61 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 83 points.
Alan Brugler, President of Brugler Marketing & Management LLC, says the exports are strong, but those sales are already in the market.
"Traders are treating today's strong weekly sales report as "buy the rumor, sell the fact". The really big numbers were reported under the daily system last week, and prices were up last week. Now it is more of a question of "Any more of those out there," Brugler says.
Jack Scoville, PRICE Futures Group vice president, says, the strong export sales are supporting the markets today. "But, I think lack of demand and news that China will sell soybeans from state reserves is bringing the selling to soybeans," Scoville says.
China demand for soy is all new crop, not good for nearby's and might be a sign that the market has peaked. Overall, corn is seeing new crop weakness on the weather which is great for the corn crop right now.
Wheat is just consolidating the losses from yesterday, Scoville says. "I look for spread weakness to continue in beans, due to less new crop area overall. The corn market is probably moving the other way on spreads on a vice-versa kind of thing."