DES MOINES, Iowa (Agriculture.com)--On Monday, the CME Group grains futures ended lower, although they recovered from mid-morning lows and wheat was nearly even with Friday.
At the close, the Sept. corn futures settled 4 1/2 cents lower at $3.66 1/2, and Dec corn futures closed 4 3/4 cents lower at $3.76 1/2.
Sept. soybean futures finished 8 1/4 cents lower at $9.45. Nov. soybean futures ended 4 3/4 cents lower at $9.35 1/2.
Sept. wheat futures settled 1/4 cent lower at $4.99.
September soymeal futures closed $2.40 per short ton lower at $336.30. September soyoil futures closed $0.13 lower at $29.97.
In the outside markets, the Brent Crude oil market is $2.67 lower per barrel, a 5.11% drop that put it below $50.00 a barrel. Crashing oil prices helped push the Dow down by 169 points. The U.S. dollar is higher.
In spite of oil’s bearish tug on commodities, corn and bean prices recovered some during Monday’s trading.
“We bounced off of 10 o’clock lows because of pretty active end user buying,” says Al Kluis of Kluis Commodities.
“Once corn gets below $3.70, you’re bargain-basement cheap,” he said of the old-crop closing price.
Food companies around the world are looking to avoid passing commodity price increases on to their customers, Kluis said.
Gasoline prices fell by 9 cents a gallon and diesel was off by 8 cents.
That’s a two-edged sword, Kluis said. It helps drag down ethanol prices and the price of corn and soybeans. But with consumers around the world spending less on transportation, they’ll have more for meat and other foods.