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DES MOINES, Iowa (Agriculture.com)--The weekend rain in the Midwest spooked the traders enough to keep the CME Group corn, soybean and wheat futures lower Monday.
The Dec. futures corn contract closed 17 cents lower at $7.92 1/4. The Nov. soybean contract settled 43 cents lower at $16.00 3/4. The Sep. wheat futures contract finished 28 1/2 cents lower at $8.56 3/4 per bushel. The Dec. soymeal futures contract closed $16.50 per short ton lower at $478.40. The Dec. soyoil contract settled $0.66 lower at $53.75.
In the outside markets, the NYMEX crude oil is $0.04 per barrel lower, the dollar is lower and the Dow Jones Industrials are 48 points lower.
Alan Brugler, President of Brugler Marketing & Management LLC, says rain and cool temps have trade expecting USDA to show unchanged or even slightly improved crop ratings Monday afternoon.
"Plus, the Friday USDA number may have been the lowest yield figure of the year, barring an early freeze. Also difficult for spec funds to buy beans because there is little commercial selling on the other side. Too early for harvest, and South Americans have sold as much as they are comfortable," Brugler says.
Jack Scoville, PRICE Futures Group vice president, says this market traded all weather, Monday.
"I am not sure USDA will show any improvement tonight (Crop Progress), but they will have to next week for sure. These rains and cooler temps are taking the heat off the bears and shifting it to the bulls. More rain coming late this week after a short warmup. So, I think lots of people are looking at a pattern change and one that could really help the beans recover," Scoville says.
Tim Hannagan, Alpari LLC senior grain analyst, says watch out for a market correction.
"After hitting sharply higher prices off of Friday's crop report, followed by selling off of those highs, traders again today continue to trim profits," Hannagan says.
Fresh news is more rain in the near-term forecast, slowing of demand with the next supply side report a month away, he says. "This all sets up a profit-taking environment. It's very possible we're in for a seasonal post growing season/pre harvest correction," Hannagan says.
