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."