Corn, Soybeans Stay Weaker Monday
DES MOINES, Iowa (Agriculture.com)-- On Monday, the CME Group's corn, soybean, and wheat markets closed weaker, as traders await tomorrow's USDA January Crop Production and Supply/Demand Reports.
At the close, the March corn futures closed 5 1/4 cents lower at $3.50. March soybean futures ended 4 cents lower at $8.61 1/4. March wheat futures finished 9 1/2 cents lower at $4.69. March soymeal futures closed $1.20 per short ton higher at $269.90. March soyoil futures are trading $0.39 lower at $29.25. In the outside markets, the Brent Crude oil market is $2.14 lower per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 26 lower.
“The move lower is driven, mostly, by fund and spec-selling on good Brazilian weather forecasts and widespread expectations for some big numbers tomorrow (USDA Report at 11am CT).”
Scoville adds, “Plus, everyone is worried that the Chinese will stop buying U.S. soybeans, as they are reported to have big supplies of beans to go with the enormous supplies of corn in storage.”
With very little commodity futures buying interest today, there is some consumptive buying interest in corn, as the $3.50 area seems to be an interesting level for some buyers, he says.
“I tend to think we are overdoing it, but with the bearish report ideas out there and the China stuff around, selling has been working. Chart patterns are weak as well. Farmers are not doing much today, because it’s too cold.”