Grain prices seen falling Tuesday
Plenty of outside market pressure, namely from poor world economic news, the CME Group corn, soybean, and wheat markets could have trouble entering positive territory Tuesday.
The Early Calls for the commodities on Tuesday, December 6, 2011, are lower. Corn is seen opening 4-6 cents lower, soybeans 3-5 cents lower, and wheat 4-6 cents lower.
Though initially favorable, the outside markets may be pushed in the opposite direction as the the S & P warned of a credit downgrading for several Eurozone member countries. The market is eyeing a summit meeting Thursday in Brussels. The S & P warning is hindering optimism of a debt crisis recovery plan being developed by German and French leaders.
As a result, the farm markets may have to fight off heavy outside market pressure all day.
In overnight electronic trading, the March corn futures contract traded 6 1/2 cents lower at $5.84 1/2 per bushel. The Jan. soybean futures contract traded 3/4 of a cent lower at $11.25 3/4 per bushel. The March wheat futures contract traded 5 1/2 cents lower at $6.06. For Jan. soymeal futures, the contract traded $0.20 per short ton lower at $282.80 and Jan. soyoil $0.18 lower at $50.11.
The outside markets appear to be favorable for Tuesday's grain trade. The real factors driving the calls will be the lower overnight markets.