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Farm markets gain strength, on the close

Updated: 06/23/2011 @ 2:11pm

CHICAGO, Illinois (Agriculture.com)--Though pressured by outside markets and continued liquidation, the CME Group farm prices regained some support from 'bottom-feeder' buyers Thursday. 

The Dec. corn futures closed 4 1/4 cents lower at $6.46, while the July corn contract closed 3 cents higher at $6.80 1/2. The July soybean contract settled 12 1/2 cents lower at $13.17 3/4. The July wheat futures closed 10 3/4 cents higher at $6.49. The July soybean meal futures settled $6.50 per short ton lower at $340.60 and July soyoil futures settled $1.00 lower at $55.15.

In the outside markets, the NYMEX crude oil is $4.26 per barrel lower, the dollar is higher and the Dow Jones Industrials are down 153 points.

Jack Scoville, PRICE Futures Group vice-president, says the market was experiencing big time fund selling, pushing the little specs out as well now. "As the day closed, the market was acting as if a low is being formed. There is some consumptive buying trying to appear," Scoville says.

He adds, "The outside news about employment data here and the IEA and US government releasing crude oil from inventories seems to be the main factors to push prices down."

With two different forecasts for the coming weeks, one hot and dusty and one still a little wet, is confusing the trade, he says. "I think the close will be important today.  A decent close could mark the end of this as options for July go off the board tomorrow and July deliveries start next week."

A strong dollar is hurting the bull case, Scoviille says. "But, it's also an item to watch, here, as it is near recent highs again and if it fails it could get ugly.  But it looks like it could be making a medium-term bottom here and so it needs to be watched.  Prices overall are still high, but we have taken a lot of the risk out of the market and we probably need to look for a bottom now."

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Pathetic 06/23/2011 @ 9:58am We are threatened by weather its too wet and cold check rainfall amounts for the Midwest the past 3 days and the temps and it's gonna be wet next week what more you people want maybe it would be better if we just didn't get a crop at all I don't the the people on the floor have any idea what it's like too farm this is not a game too us it's our life but who cares right.

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