Soybeans seen plunging Wednesday
On Wednesday, the CME Group's soybean market is expected to start sharply lower.
The early calls for the commodities on Wednesday, March 12, 2014, are weaker. Corn is seen opening 5 to 7 cents lower, soybeans 38 to 39 cents lower, and wheat 3 to 5 cents lower.
In overnight trading, the May corn futures contract traded 5 cents lower at $4.78 per bushel. May soybean futures traded 42 3/4 cents lower at $13.70. The May wheat futures contract traded 1 1/4 cents lower at $6.57. For May soybean meal futures, the contract traded $11.80 per short ton lower at $432.40; May soybean oil futures traded $0.80 lower at $42.95.
The outside markets are favorable for Wednesday's grain trade. The real factors driving the calls will be the lower overnight markets.
Jeff Coleman, The Trean Group analyst, says signals from Chinese demand and the Ukraine crisis compound the problems for soybean prices.
May soybean futures are down 35 cents this morning as traders look to liquidate positions and put the money into safer markets as the Black Sea crisis seems to escalate. Selling pressure carried over from yesterday’s close with the May contract breaking through support levels overnight as traders piled it on. The next level of support for May soybeans was around $13.80 with futures trading just below that level this morning as chartists wait to see if futures can stick around these levels in the face of a declining stock market," Coleman says.