Tuesday grain trade starts ugly
Early trading has the grains deeply in the red Tuesday morning as worries about European debt and MF Global's bankruptcy situation drive the bearish bus.
December corn is 8 1/4 cents lower at $6.38 3/4 per bushel, while January soybeans are 17 1/4 lower at $11.90 1/4 and December wheat is 10 cents lower at $6.18 1/4, according to Barchart.com. The early losses fall in line with a sharply lower overnight trade.
The trade is completely dialed in to factors other than the typical grain fundamentals, says Derivitaves manager for ICAP Energy LLC and Agriculture.com Market Analyst Scott Shellady. And, it's coming at a huge cost to corn, soybean and wheat prices Tuesday.
"Europhoria turns to Europhobia. MF Global may have some commingling issues. Greece suddenly wants a referendum on the 'bailout' package. And once again, grain fundamentals will take a backseat to headlines. This is getting pretty old, pretty fast," Shellady said Tuesday morning in Marketing Talk.