The CME Group grain markets close sharply lower
CHICAGO, Illinois (Agriculture.com)--Favorable weather forces the CME Group grain markets to close sharply lower Monday.
The Dec corn futures settled 6 1/2 cents lower at $3.78. The Nov. soybean contract settled 15 1/2 cents lower at $9.65. The Sep. wheat futures ended 6 3/4 cents lower at $5.89 1/2. Dec. soybean meal futures closed $6.10 lower at $277.20 per short ton. Dec. soyoil futures closed 27 points lower at 39.49.
In the outside markets, the NYMEX crude oil is $0.08 higher per barrel, the dollar is lower, and the Dow Jones Industrials are up 58 points.
Tim Hannagan, PFGBest.com senior analyst, says rain makes grain. "Grain prices opened lower today after weekend rains fell across the Midwest Corn Belt that comprises 85% of our corn and bean production. But the trade is careful to turn too bearish until they get a look at tonight’s 3:00 p.m. central crop condition report."
Hannagan adds, "There has been concern that it’s been too wet in the western Corn Belt of Nebraska and Iowa and too little moisture in the ECB of central Illinois, Indiana and Ohio. Last week's weather brought flooding rains to the WCB, little rain totals at best to the ECB and high heat and dry in the southern Delta. The next 10 days keeps eastern belt states with light rain totals and talk of late week rain totals of 6 to 8 inches in Iowa and Nebraska almost identical to last week. If the crop condition reports raise the ratings the trade moves in as sellers this week but lower corn and bean ratings confirms trader thoughts and prices move to new highs."
Matt Pierce, a floor trader with pitguru.com, says that overall the week ahead looks about as calm as it has been in two months. "There is little fear of weather. Plus, outside of beans, demand remains quiet and longs are under pressure. This should be a week for bears unless something crazy happens, which it always does when the market least expects it. Look to the downside in all markets this week with bean oil looking to gain against meal, old crop beans lose to new crop, corn gains against wheat and beans continue to regain lost ground against corn."