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Soybean Futures Prices Close 11¢ Lower
DES MOINES, Iowa (Agriculture.com)— On Tuesday, the CME Group’s soybean market closed at 3 1/2 week lows, while wheat hit a contract low.
At the close, the March corn futures settled 5 3/4 cents lower at $3.66 1/2. May soybean futures clolsed 11 1/4 cents lower at $8.73. May wheat futures ended 8 1/4 cents lower at $4.55 3/4. May soymeal futures closed $1.80 per short ton lower at $264.30. May soyoil futures closed $0.73 lower at $31.01. In the outside markets, the Brent Crude oil market is $1.56 lower per barrel, the U.S. dollar is higher, and the Dow Jones Industrials are 168 lower.
The soybean market is falling hard, after hitting a top of a 4-month range, considering to be over bought, one CME Group floor trader, requesting anonymity. “After 4 months of waiting, we finally have confidence in large crops in South America. Plus, the market is watching Argentina’s Peso make a new low which we assume will inspire grains to move. Brazil meal basis down 11 dollars in 4 days, so harvest is coming on. And, the US is not competitive for export.
He adds, “My implied range with the fear stocks-to-use will grow to 490 is $8.90-$7.90 soybean price range.”
The Ag Outlook Conference may imply larger U.S. soybean acres, as well, the trader says. “USDA’s total acreage on the Dec numbers were a little low, if you assume normal planting progress and weather. If you delay corn planting you get even more soybean acres. Informa, the private analyst firm, has soybean acres at 85 million bean on their early survey.”