Grains tank on negative macros
A mostly neutral jobs report, slipping outside markets and lackluster grain export reports Friday morning have overnight grain losses sharpening as the open outcry session begins on the CME Group floor.
Just prior to the opening bell, the December corn futures contract was 7 1/4 cents lower at $7.43 3/4 per bushel, while December wheat was 4 1/2 lower at $8.64. January soybeans lost about 4 cents in the last hour or so, trading 17 1/2 lower to $15.42 1/2.
Weekly grain export sales, announced a day later than normal because of Hurricane Sandy earlier this week, on Friday morning showed corn and wheat exports fell on the low side of previous trade estimates, while soybeans rose beyond earlier guesses:
Corn: 167,900 MT; previous trade estimate range was 100-400K
Wheat: 362,900 MT; previous trade estimate range was 300-600K
Soybeans: 741,200 MT; previous trade estimate range was 500-700K
One big macro-economic factor today was Friday's federal employment report. Previous estimates were for the economy to have added 125,000 new jobs, and the report showed 171,000. Unemployment is, however, still sitting at 7.9%, just under the key 8% mark. Analysts say the report is largely neutral.