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Wheat Closes 18¢ Lower

Updated: 07/18/2014 @ 2:44pm

DES MOINES, Iowa (Agriculture.com)--After trading higher, the CME Group soybean market closed lower, along with corn and wheat Friday.

The Dec. corn futures closed 8 3/4 cents lower at $3.78.

Nov. soybean futures finished 8 3/4 cents lower at $10.85.

Sep. wheat futures ended 18 1/2 cents lower at $5.32.

The Dec. soymeal futures contract closed $5.70 per short ton lower at $351.80.

In the outside markets, the NYMEX Brent crude oil is $0.08 per barrel lower, the dollar is lower and the Dow Jones Industrials are 124 points higher.

Jack Scoville, PRICE Futures Group vice-president, says the market did not respond too well to the Ukraine disaster yesterday and to all of the soybeans export sales over the last few days. 

"So, it is hardly a pillar of strength.  It looks to me like anyone who bought futures over the last few days is exiting stage left.  Plus, probably some new selling just on the poor performance right now," Scoville says. 

The crop-weather is great and going to warm up next week, which is needed, Scoville says.  Some showers will be around later next week to help maintain good condition.  

"So, no one wants to be caught long this thing these days.  It is weaker than I anticipated today, but it seems that cooler heads are prevailing in Ukraine, so no move to halt sales and shipments from the Black Sea and no other real reason to own anything here.  It might get kind of ugly here today, wheat already is," Scoville says.  

Alan Brugler, Brugler Marketing & Management LLC, says that the short-covering that provided the corn market with an initial bounce yesterday has faded.

In general, "The trade has been consolidating over the last 5 days as the market attempts to work off of oversold levels.   Trader talk is that China sold 473,000 MT of the 502,000 MT of corn it offered at auction from state reserves this week," Brugler says.  

USDA weekly export sales were stronger than expected a 1,068,000 MT.  Commitments as a percentage of total exports are still a little light at 100%, which compares to 104% last year and the 5-year average of 103% Brugler says.  

For soybeans, funds were estimated to be net sellers of roughly 5,000 contracts of  soybeans yesterday, Brugler says. "Trader talk is that there was heavy producer selling in Brazil, yesterday, during the early morning rally."  

USDA reported net weekly export sales for US soybeans last week were 598,700 MT. Taiwan and China both bought old crop beans.   In other export news, private exporters reported to the U.S. Department of Agriculture export sales of another 708,000 metric tons of soybeans to China during the 2014/2015 marketing year. 

"Despite the large purchase announced yesterday, contracts for delivery to China in the new crop year are still behind year ago by at least 80 million bushels," Brugler says. 

Helen Pound, KCG Futures senior grain analyst, says the market still eyes the airplane tragedy turmoil between Ukraine/Russian.

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