Soybeans close sharply lower
DES MOINES, Iowa (Agriculture.com)--As it started, the CME Group soybean market settled sharply lower Monday.
The July corn futures settled 2 cents higher at $5.83. The July soybean contract closed 19 cents lower $13.87. The July wheat futures closed 1 1/4 cents higher at $5.98 1/4. The July soymeal futures ended $5.00 per short ton lower at $403.50 and July soyoil futures closed $0.94 at $51.30.
In the outside markets, the NYMEX crude oil is $1.67 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 86 points.
Jack Scoville, PRICE Futures Group vice president, says the soybeans are starting to show signs that the sell-off may be hitting its peak.
"This is day two of the meltdown and there was plenty of fund type selling before. So, I think they might have pushed it enough. We will see.
Corn and wheat are supported on spreads against soybeans, he says.
Not the most active volume day here today, except for the beans with all the liquidation.
"I think the market trade, after May goes off the board, will be interesting, especially in corn with the big bull spread there," Scoville says.
Scoville adds, "No matter what I feel, the downside is limited for now and we might make a short term bottom today. Weather is wonderful but supplies available to the market remain short and will become more important. I am not a seller," Scoville says.
Meanwhile, farmers are too nervous on this pullback in the soybean market, one CME Group floor trader, requesting anonymity says. "This is a technical reversal, not fundament. Now, the corn market may be in trouble for awhile. If corn yields are high they will have to store some corn. The ethanol blend wall is keeping that market routine. I view $4.40 per bushel as the Dec. corn futures market's downside, $5.40 as upside. "But, we can’t trade $4.40 until after wheat harvest and corn pollination in July," he says.