Soybeans end sharply lower
DES MOINES, Iowa (Agriculture.com)--Speculative selling, drier weather outlooks for the Midwest, and weak Chinese economic news pushed the CME Group corn, soybean, and wheat prices to a lower close Wednesday.
The July futures corn contract closed 3 cents lower at $6.46. The July soybean futures contract finished 26 cents lower at $13.73. July wheat futures closed 10 cents lower at $7.21 per bushel. The July soymeal futures finished $10.10 per short ton lower at $404.40. The July soyoil futures ended 37 cents lower at $48.65.
In the outside markets, the NYMEX crude oil is $2.96 per barrel lower, the dollar is lower, and the Dow Jones Industrials are 89 points lower.
Jack Scoville, PRICE Futures Group vice-president, says this weaker market is digesting the China POMI data and demand fears. "Spec money is leaving commodities as the commodity index keeps getting weaker. That is part of it. But the selling today seems tied to the release of the Chinese POMI data, showing a weaker Chinese economy. I think that is when the market started to break down," Scoville says.
The weekly ethanol data Wednesday, showing increased production, brought corn back to where it is now, Scoville says. "It is the way the market is these days. Smiley faces one day and frowny faces the next. That makes it real hard to trade," he says.
Meanwhile, Ken Smithmier, The Hightower Report market analyst, says the weak action in the agricultural commodity markets is mostly due to negative sentiment toward the broader-commodity complex. "This is the first day of May, so capital allocation and positioning will be active. The trade in corn and wheat is countervailed by positive weather influences such as cold temperatures in the west that may adversely impact wheat and wet conditions across the Corn Belt to end the week, which will shut down most corn planting," Smithmier says.
Keep in mind, planters have been rolling in Iowa, Nebraska, and parts of Missouri since last Friday, Smithmier says.