Dollar drops corn, soybean markets
With global markets under pressure, the dollar strengthening, and continued bad vibes from MF Global's financial future, the CME Group corn, soybean, and wheat markets look to follow a sharply lower overnight market Tuesday.
The Early Calls for the commodities on Tuesday, November 1, 2011, are considerably lower. Corn is seen opening 10-12 cents lower, soybeans 18-20 cents lower, and wheat down 8-10 cents.
In overnight electronic trading, the Dec. corn futures contract traded 12 1/2 cents lower at $6.34 1/2 per bushel. The Jan. soybean futures contract traded 18 3/4 cents lower at $11.98 1/2 per bushel. The Dec. wheat futures contract traded 9 3/4 cents lower at $6.18 1/2. For Dec. soymeal futures, the contract traded $4.80 per short ton lower at $311.30 and Dec. soyoil $0.68 lower at $50.49.
The outside markets are sharply unfavorable for Tuesday's grain trade. The real factors driving the calls will be the sharply lower overnight markets.