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All Farm Markets Have Dropped Monday

Heat ridge talk fades.

DES MOINES, Iowa — On Monday, the CME Group’s corn, soybean, and wheat markets closed lower.

The buyers have left the soybean market, sending prices into the red, despite tomorrow’s USDA July Supply/Demand Report that is expected to raise exports.

At the close, the Sept. corn futures settled 6¾¢ lower at $3.48¼, and Dec. futures are 7¢ lower at $3.55½ per bushel.

August soybean futures closed 6¼¢ lower at $10.77, while Nov. soybean futures finished 2 3/4¢ lower at $10.55.

Sept. wheat futures settled 4¾¢ lower at $4.30.

August soy meal futures are $3.70 short ton lower at $372.60. July soy oil futures closed $0.02 lower at 30.33¢ per pound. 

In the outside markets, the Brent crude oil market is $0.64 per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 116 points higher.

Jack Scoville, The PRICE Futures Group, senior market analyst says that the higher overnight markets faded on new weather outlooks.

“Overnight prices held up well overnight on forecasts for hot and dry next week after a reasonable good week weatherwise this week, but now has found new selling from specs,” Scoville says.

“Specs are getting shorter in wheat and less long in corn."

On June 14, 2016, the funds were long the corn market with 272,000 contracts. On July 5, 2016, that same group of investors held 107,000 long contracts. So, they shed 165,000 long contracts in less than a month.

For soybeans, in the same time frame, the funds had 214,642 long contracts. On July, they held 160,438 long contracts. They shed 54,174 long soybean contracts.

Regarding selling, farmers are said to be quiet right now, Scoville says. "I think that there must have been a change in the weather forecast for next week, from the way the market is acting right now, but I don’t know that yet.” 

The reports tomorrow are expected to be negative, helping the selling interest, he says. 

The trade is looking for roughly unchanged USDA Crop Progress condition estimates when the weekly report is released at 3:00 pm.

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