Soybeans, wheat trend lower Monday
With the markets trending lower overnight, the CME Group soybean and wheat markets are expected to hold that same posture to start floor trading at 9:30am CT Monday.
The Early Calls for the commodities on Monday, November 12, 2012, are mostly lower. Corn is seen opening 2-4 cents higher, soybeans 18-22 cents lower, and wheat 6-8 cents lower.
In overnight trading, the Dec. corn futures contract traded 3 cents higher at $7.42 per bushel. January soybean futures traded 24 cents lower at $14.26 per bushel, and Dec. wheat traded 7 cents lower at $8.79. For Dec. soybean meal futures, the contract traded $7.30 per short ton lower at $442.40. Dec. soybean oil futures traded $0.45 lower at $47.32.
The outside markets are mostly unfavorable for Monday's grain trade. The real factors driving the calls will be the mostly lower overnight markets.
Tom White, FuturesRoad.net analyst and CME Group corn pit trader, says the market enters the week in a triangle trade pattern, technically-speaking.
"The market remains locked in a congestive pattern. We continue to trade within the confines of a triangle pattern on the dailies. If we do breakout of the triangle in the coming week, price action would be better on the upside," White says.
But, there is a slight bias to the short side on Monday, as the market had a new short-term high on Friday but closed below the close of the previous two days (double reversal day), White says.
"This pattern is generally bearish for the next trading day but the market usually tries to rally first," White says.