All farm markets drop Friday

Profit-taking takes place for a second day.

On Friday, the CME Group’s farm markets sell off, as the month ends.

At the close, the May corn futures closed 2 1/2¢ lower at $5.47 1/4. July corn futures finished 4 3/4¢ lower at $5.35. New crop December corn futures closed 3 1/4¢ lower at $4.70 3/4. 
May soybean futures settled 3 1/4¢ lower at $14.04 1/4. July soybean futures closed 5 3/4¢ lower at $13.91 1/2. New crop November soybean futures closed 7 3/4¢ lower at $12.23 3/4.

May wheat futures finished 15 1/4¢ lower at $6.60 3/4. 

May soymeal futures finished $1.60 short term lower at $421.40.

May soy oil futures closed 0.27 higher at 49.94¢ per pound.

In the outside markets, the NYMEX crude oil market is $1.86 per barrel lower (-2.93%) at $61.67. The U.S. dollar is higher, and the Dow Jones Industrials are 475 points lower (-1.51%) at 30,926 points.

Jason Roose, U.S. Commodities, says that Friday's markets responded negatively to weak demand numbers. 

“Today's lower market was a hangover trade from yesterday with the poor exports and the strong dollar. The small corn export cancellation, yesterday, gave a small sign that demand may be slowing,” Roose says.

Bob Linneman, Kluis Advisors, says that investors are trying to figure out if this is a bull market.  

“The weekly export sales data was disappointing, which gave the bears enough momentum to take control for the day. At the current export pace, we are still on track to export a larger volume than the current USDA target. At some point, we should expect to see higher prices curb demand. Are we at that point now? Or is this another pull-back in the bull market,” Linneman stated in a daily note to customers. 

Linneman added, “The last days of February are important, since we will soon know the spring crop insurance price. Acreage adjustments are already happening based on these numbers. U.S. spring weather will slowly start making the headlines. Any signs of a slow start to planting will create a buzz.”

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