Weather sinks corn, soybean prices
DES MOINES, Iowa (Agriculture.com)--On Wednesday, the favorable U.S. corn planting weather pushed the CME Group corn and soybean markets to a lower close.
The July futures corn contract settled 2 cents lower at $6.50. New-crop Dec. futures finished 6 cents lower at $5.31. The July soybean futures contract finished 2 cents lower at $14.12, new-crop Nov. soybeans closed 4 cents lower at $12.09. July wheat futures ended 17 cents lower at $6.93 per bushel. The July soymeal futures closed $1.30 per short ton lower at $410.50. The July soyoil futures ended $0.41 lower at $49.35.
In the outside markets, the NYMEX crude oil is $0.05 per barrel higher, the dollar is higher and the Dow Jones Industrials are 28 points higher.
Peter Meyer, PIRA Energy Group senior director of agricultural commodities, says there is a definite bearishness hanging over new crop corn.
"We’re in the middle of what is probably the best weather week for planting, so far this year. The market is expecting a record planting pace in corn, before the rains come again by the weekend. Farmers are scrambling to get in what they can so there’s no time to deliver corn to the elevators. The market is adequately reflecting all of this in new crop/old crop differential," Meyer says.
As the U.S. corn planting pace picks up tremendously, any thoughts of the crop not getting planted go by the wayside.
"Besides weather, the key for the summer will be the conditions that the seed was planted in. For the most part they’ve been marginal at best. But, that all doesn’t matter with poor demand. It will take a sub-$4.50 price to really get demand heated up. But, I’m not so sure we can get there. We should be able to get down to $5.00 and then it’s a matter of consumers stepping up. If they don’t, it will lead to another leg lower," he says.