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Grains settle lower

11/01/2010 @ 11:10am

CHICAGO, Illinois (Agriculture.com)--After starting higher, a technical sell-off kept the CME Group grain markets pressured, closing lower Monday.

The Dec corn futures settled 4 3/4 cents lower at $5.77 1/4. The Jan. soybean contract settled 1 cent lower at $12.35. The Dec. wheat futures closed 14 3/4 cents lower at $7.02 1/4.  The Dec. soymeal futures contract ended $0.10 higher at $337.80 per short ton. The Dec. soyoil futures contract closed $0.45 higher at $49.75.

In the outside markets, the NYMEX crude oil is $1.51 per barrel higher, the dollar is higher, and the Dow Jones Industrials are up 44 points.

Jack Scoville, PRICE Futures Group vice-president, says price action has been kind of disappointing for the bulls, given that the Dollar is not doing much. "I think we are seeing some spec money come off the table due to the fed announcements this week as much as anything.  People are pretty worried about what direction the Fed will go and also what will happen tomorrow in the mid-term elections.  Been hard to get people to trade due to these factors," Scoville says.  

Meanwhile, traders are seeing the 'Goldman Roll' starting, as index funds switch large contract positions from one month to another.

"The 'roll' is underway, with some companies moving corn positions from the December contract to March. It's time to liquidate the Dec. corn and Dec. wheat contracts," one floor trader, choosing to remain anonymous says. "I find that the market doesn't go in any real direction during a 'roll' period, just a bunch of noise."

Meanwhile, new yield estimates are expected to be released today and tomorrow. FC Stone will be out with a new yield number later this afternoon, while private analyst firm, Informa Economics, will release updated yield estimates tomorrow. 

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