Lower farm markets seen Wednesday
Follow-through from lower overnight trading is expected to keep pressure on the CME Group corn, soybean and wheat markets Wednesday.
The Early Calls for the commodities on Wednesday, February 22, 2012, are lower. Corn is seen opening 2-4 cents lower, soybeans 4-6 cents lower and wheat 2-4 cents lower.
In overnight trading, the March corn futures contract traded 2 1/4 cents lower at $6.27 1/4 per bushel. March soybean futures traded 6 cents lower at $12.65 per bushel, and March wheat traded 3 1/2 cents lower at $6.29 1/2. For March soybean meal futures, the contract traded $1.10 per short ton lower at $329.10. March soybean oil futures traded $0.28 lower at $53.78.
The outside markets are slightly favorable for Wednesday's grain trade. The real factors driving the calls will be the lower overnight markets.
The markets could find support from fresh export news Wednesday. Japan buys 1.8 mmt of U.S. feed-grade corn for April-June delivery, according to the Dow Jones Newswire. The business comes as a result of Ukraine halting shipments due to cold weather.
Also, Japan seeks 300,000 mt of U.S. feed wheat. Taiwan buys 58,000 mt of Brazilian soybeans.