Soybeans close sharply lower
DES MOINES, Iowa (Agriculture.com)--The CME Group soybean futures finished sharply lower Tuesday.
The Dec. futures corn contract settled 1 1/4 cents higher at $7.58 1/4. Nov. soybean futures contract finished 29 3/4 cents lower at $15.30. Dec. wheat futures settled 12 cents lower at $8.71 per bushel. The Dec. soyoil futures contract finished $0.50 lower at $50.69. The Dec. soymeal futures contract finished $11.60 per short ton lower at $462.70.
In the outside markets, the NYMEX crude oil is $0.77 per barrel lower, the dollar is lower and the Dow Jones Industrials are 32 points lower.
Jack Scoville, PRICE Futures Group vice president, says the market is reacting to better harvest pace, and for soybeans better yields.
"I think funds are selling too, the charts are pretty ugly and they are probably trying to flip around a bit. No real demand news out there. That is not helping the beans," Scoville says.
FC Stone will release U.S. 2012 crop estimates today, with most expecting the firm to estimate a 3 to 4 bushel increase in soybeans and a decrease in corn yields, he says.
"I'm trying to talk to guys about call spreads in beans and corn, I might be a bit early but it has been a pretty big break already! Especially in soybeans and that is where I am trying the spreads," Scoville says. No doubt about it, we need some demand to spark things. But, the harvest pressure should start to pass in a week or two."