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Soybeans Lose Big Gains Tuesday

05/20/2014 @ 8:47am

DES MOINES, Iowa (Agriculture.com)--A trader that is long the corn market liquidated, pushing the CME Group corn, soybean, and wheat markets lower Tuesday. 

The July corn futures contract settled 3 3/4 cents lower at $4.73. The Dec. corn futures finished 3 3/4 cents lower at $4.72. The July soybean futures contract ended 15 cents lower at $14.69, after a high of $15.01. The Nov. soybean futures closed 6 cents lower at $12.32. July wheat futures closed 4 cents lower at $6.70 per bushel. The July soymeal futures contract closed $3.80 per short ton lower at $486.70. The July soyoil futures closed $0.35 lower at $40.07. 
In the outside markets, the NYMEX Brent crude oil is $0.01 per barrel higher, the dollar is higher, and the Dow Jones Industrials are 157 points lower.

Dustin Johnson, EHedger analyst, says a long is getting short, putting pressure on corn. "It looks like a large long position in corn is liquidating and moving over to soybeans; rumor has it that a large swap position has had to liquidate."

There are not a whole lot of fundamental reasons to see this market action, he says. "So, the best explanation is the money flow. Combine this with the fact that farmers are almost finished planting corn, which has brought a lot of hedging back to the market. This natural selling has driven prices even lower." 

Soybeans don't have that planting progress factor, yet, since the U.S. farmers are still at 34% planted, as of Sunday.

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