Soybean market closes 30¢ lower Wednesday
On Wednesday, the CME Group’s farm markets tanked.
At the close, the May corn futures finished 11¾¢ lower at $5.34. July corn futures ended 10½¢ lower at $5.24¾. New-crop December corn futures settled 4¼¢ lower at $4.80½.
May soybean futures finished 30¼¢ lower at $14.09½. July soybean futures closed 30¼¢ lower at $13.96. New-crop November soybean futures closed 23½¢ lower at $12.38¼.
May wheat futures ended 4¢ lower at $6.52½.
May soymeal futures finished $9.80 short term lower at $406.80.
May soy oil futures closed 0.04¢ lower at 53.51¢ per pound.
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In the outside markets, the NYMEX crude oil market is +0.49 higher (+0.77%) at $64.50. The U.S. dollar is lower, and the Dow Jones Industrials are 518 points higher (+1.63%) at 32,351 points.
Jack Scoville, PRICE Futures Group, says that rain in South America is pressuring the markets.
“The talk about more rain for Argentina very late next week seems to be the fundamental trigger after the disappointing WASDE reports yesterday. Trade had expected increased demand but got no changes whatsoever in the U.S. data and increased BRZ SBS production in the world data. I think there is more upside left, but it will have to wait. Even with the selling, we are holding support in corn and beans," Scoville says.
Bob Linneman, Kluis Advisors, says that investors are still digesting the most recent USDA numbers.
“The USDA supply/demand and global crop production reports did not have many big changes. The grain markets went lower initially and then rallied back. Corn closed fractionally lower, while soybeans and wheat closed higher,” Linneman stated in a daily note to customers.
Linneman added, “The one unusual change in all of the reports released from the USDA was the increase in last year’s Brazilian soybean crop by 2.5 million metric tons. This was initially thought to be bearish. However, if they had a larger-than-expected crop last year, and now they are sold out, then global demand must be larger than expected.”