Soybeans Close 23¢ Lower
DES MOINES, Iowa (Agriculture.com)--On Tuesday, the CME Group soybean market closed sharply lower, now trading with a 13 in front of it.
The July corn futures contract closed 2 1/4 cents lower at $4.38. The Dec. corn futures finished 2 1/2 cents lower at $4.39.
The July soybean futures contract ended 23 1/2 cents lower at $13.98. The Nov. soybean futures closed 5 cents lower at $12.12.
July wheat futures settled 3/4 of a cent higher at $5.81.
The July soymeal futures contract finished $11.70 per short ton lower at $450.70. The July soyoil futures are trading $0.18 higher at $39.68.
In the outside markets, the NYMEX Brent crude oil is $0.70 per barrel lower, the dollar is higher and the Dow Jones Industrials are 39 points higher.
Dustin Johnson, EHedger LLC grain analyst, says that the old-crop soybeans are certainly pressured the most, due to market positioning.
"The Commitment of Traders report showed that as of last Tuesday the managed money crowd was holding onto a significant amount of net long old crop soybeans," Johnson says.
Johnson adds, "I believe the recent weakness of this July contract and the July-November spreads is the liquidation of this position. The bearish new crop fundamentals may have been the catalyst, as funds are reluctant to maintain the position when carryout projections are running so high and the forecast is favorable."