Soybeans, corn turn lower
DES MOINES, Iowa (Agriculture.com)--Despite stronger demand, the better-than-expected rains falling in Argentina trumped the soybean market turning prices lower Thursday.
At midsession, the March futures corn contract is trading 5 3/4 cents lower at $7.25. The March soybean futures contract is trading 12 cents lower at $14.24. March wheat futures are trading 6 cents lower at $7.78 per bushel. The March soyoil futures contract is trading 8 cents lower at $51.23. The March soymeal futures are trading $6.40 per short ton lower at $412.70.
In the outside markets, the NYMEX crude oil is $1.13 per barrel higher, the dollar is lower, and the Dow Jones Industrials are 95 points higher.
Jack Scoville, PRICE Futures Group vice-president, says the selling is just long liquidation today.
"People wondering if the bean sales are the high for the year, so selling a bit, plus I see Agroconsult talking 84.0 million tons of soybean production estimate for Brazil and they are the high. But others are talking 82-plus million tons."
So, if you think we are about done with selling soybeans to the Chinese, you might be selling futures now, he says.
Corn and wheat sales were OK, and dry weather continues in the Great Plains. "More than expected rains in Argentina is a little negative but still very dry there. And an overall tight soybean situation all around for at least a while longer is still the best support," Scoville says.
But, the market has had nice rallies since the report Friday, he says. And a nice rally for corn, since before the report. "So, some long liquidation should be expected sooner or later, and it looks like it came now. Still think we go higher, maybe again next week," Scoville says.