Home / News / Business news / Grain prices close lower

Grain prices close lower

08/10/2010 @ 9:44am

CHICAGO, Illinois (Agriculture.com)--Fund liquidation, bearish USDA crop numbers close the CME Group grain markets lower Monday.

The Dec corn futures settled 9 cents lower at $4.09. The Nov. soybean contract closed 13 cents lower at $10.22. The Sep. wheat futures ended 17 3/4 cents lower at $6.94 3/4.


In the outside markets, the NYMEX crude oil is $1.25 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 53 points.


Jason Ward, Northstar Commodity Investment Co., says, the markets are lower due to fund liquidation. The funds are taking some risk off the table before the USDA report on Thursday. 


"These reports from USDA have held many surprises in the past six months and funds have been on the wrong side of this report. It doesn’t surprise me to seem them banking some of their recent profits before that report."

 

With insatiable soybean demand from China, crush margins are positive, Ward says. "So, a lower bean price is actually more bullish, not bearish."

 

Ward adds, "Meanwhile, wheat has completed a perfect 38% retracement in Dec Chicago to $7.16. It is only more bearish if we take out $7.16."

CancelPost Comment
MORE FROM MIKE MCGINNIS more +

Soybeans Close 13¢ Lower Tuesday By: 11/18/2014 @ 8:37am DES MOINES, Iowa (Agriculture.com)—Acting like a ‘turnaround Tuesday’, the CME Group soybean…

Soybeans Seen Slightly Higher Tuesday By: 11/18/2014 @ 6:36am On Tuesday, the CME Group's corn, soybean, and wheat markets are expected to start mostly…

Soybeans Close 13¢ Higher Monday By: 11/17/2014 @ 8:48am DES MOINES, Iowa (Agriculture.com)—On Monday, the CME Group soybean market closed higher, with…

MEDIA CENTERmore +
This container should display a .swf file. If not, you may need to upgrade your Flash player.
Cool Tools Christmas Edition: Part 2