Soybeans close 'limit' down
DES MOINES, Iowa (Agriculture.com)--A wetter South American forecast, increased U.S. harvest activity, combined with huge amounts of spec-selling pushed the CME Group soybean market to its 'limit' down 70 cent mark Monday.
As a result, tomorrow's daily trading limit for soybeans will rise to $1.05.
The Dec. futures corn contract settled 34 cents lower at $7.48. Nov. soybean futures contract finished at the exchange's 'limit' down trading level of 70 cents at $16.69. Dec. wheat futures closed 46 1/4 cents lower at $8.78 per bushel. The Dec. soyoil futures contract ended $1.98 lower at $55.39. The Dec. soymeal futures contract ended $20.00 per short ton lower at $505.40.
In the outside markets, the NYMEX crude oil is $2.33 per barrel lower, the dollar is higher and the Dow Jones Industrials are 52 points lower.
Jack Scoville, PRICE Futures Group vice president, says the markets are getting 'trashed' today, due to lots and lots of spec-selling.
"All spec-sellers are trying to go through the same door at the same time. We are in harvest and so specs are trying to take money off the table, but are going to have a tough time. Demand guys are holding back and waiting now," Scoville says.
Farmers are getting out into the fields and seeing what they have, he says.
"They (farmers) are inclined to let it (crop) go at harvest, because of the aflatoxin fungus in corn and due to price for both corn and soybeans," Scoville says.
Scoville adds, "I think we can move to $16.25, for Nov soybeans and $7.00 Dec corn, over time."
It's interesting to note that some yield reports are not as bad as they could have been, he says. "This implies that maybe we got a better crop than we all thought, which makes what could happen after harvest much more difficult to call! But, today is about big time spec-selling with no buyers," Scoville says.