Soybeans fall double-digits
DES MOINES, Iowa (Agriculture.com)--China's cancellations of U.S. corn cargoes weighed on the CME Group markets, sending corn to a 39-month low Monday.
The Dec. corn futures contract closed 1 1/4 cents higher at $4.16. The Jan. soybean futures contract finished 15 cents lower at $13.21. Dec. wheat futures ended 5 1/4 cents lower at $6.49 per bushel. The Jan. soymeal futures contract settled $9.60 per short ton lower at $447.00. The Dec. soyoil futures closed $0.12 higher at $40.34.
In the outside markets, the NYMEX crude oil is $0.01 per barrel higher, the dollar is higher and the Dow Jones Industrials are 42 points lower.
Jack Scoville, PRICE Group vice-president, says the corn and soybean markets were pressured by the China news today.
On Monday, China announced that it canceled additional cargoes of corn due to unauthorized gmo traits.
"Also, the news that China will get harder on what goes into the government storage has hurt soybeans and corn, today. Nothing else out there that I can see," Scoville says. All China demand worries and not much else. Wheat is weaker in sympathy."
Scoville sees corn ending its lower trading ways soon.
"I have been getting my buy-side guys priced. Wheat can see some winterkill this week that could be somewhat supportive, but has not been so far due to ideas that only small losses are likely. Even so, it can’t help. Lots of people want to buy corn and sell soybeans as a spread, maybe we are finally going to see that start to work."