Grains, Soybeans Open Steady to Lower
DES MOINES, Iowa (Agriculture.com) -- After a big drop at the close last night, grains and soybeans opened at even lower prices this morning.
At the open, the December corn futures are trading 3/4 cent lower at $3.51 1/4.
November soybean futures are trading 5 1/4 cents lower at $10.14 3/4.
December wheat futures are 4 1/4 cents lower at $5.31 1/2.
“Soybean futures are currently steady to 3 cents lower. Brokerage firm Allendale is estimating U.S. average yield at 46.4 bpa and a 3.884 billion-bushel crop. A surge in the U.S. dollar index is raising questions about additional soybean meal export sales. Weather forecaster Lanworth is at 3.852 billion bushels on a 46.7-bpa forecast,” says Alan Brugler of Brugler Marketing and Management.
“A Chinese buying mission is expected to be in the U.S. in the middle of the month, and is thought likely to book some big new-crop bushels while here. With a record crop on the way, more exports are definitely needed.”
In the outside markets, the crude oil dropped $1.21 per barrel higher to $94.33, the dollar is higher, and the Dow Jones Industrials are higher.
Pete Meyer, Senior Director of PIRA Energy Group, says he doesn’t trust either yesterday’s action or today’s.
"That’s not to say that I’m bullish by any stretch of the imagination but rather had these sell-offs occurred a month from now, during the heart of harvest, it would make much more sense. While some headline grabbers continue to press their yields higher based on improving weekly conditions, we’ve also seen reductions from some analysts that make sense. After being on a recent crop tour, I’m just below 170 bpa as a national yield for corn and just above 46 bpa in soybeans. Some of these numbers that are being bantered around are impossible to get to in my opinion," Meyer says.