DES MOINES, Iowa — On Tuesday, the CME Group’s farm markets take quite the haircut, in response to the weekly crop ratings.
In early trading, the Sept. corn futures are 5¢ lower at $3.65, while December futures are 5 1/4¢ lower at $3.79.
Aug. soybean futures are 25 1/4¢ lower at $9.74, November soybean futures are 26¢ lower at $9.81.
September wheat futures are 3¢ lower at $4.71.
Dec. soy meal futures are $8.30 per short ton lower at $317.10. Dec. soy oil futures are $0.66 lower at 34.47¢ per pound.
In the outside markets, the Brent crude oil market is $0.60 per barrel lower, the U.S. dollar is higher, and the Dow Jones Industrials are 58 points higher at 21,949 points.
On Monday, the CME Group’s farm futures closed off its daily lows, but remain without any fresh bullish news.
At the close, the Sept. corn futures finished 3 1/4¢ lower at $3.70, while December futures finished 3 1/4¢ lower at $3.84.
Sep. soybean futures settled 6 1/4¢ lower at $9.99 1/2, November soybean futures closed 5 3/4¢ lower at $10.07 1/4.
September wheat futures closed 6 1/2¢ lower at $4.74 1/2.
Dec. soy meal futures finished $3.10 per short ton lower at $325.40. Dec. soy oil futures closed $0.11 higher at 35.13¢ per pound.
In the outside markets, the Brent crude oil market is $0.46 per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 79 points higher.
Deanne Hawthorne-Lahre, StatFutures co-founder and grain trader, says the markets are reacting to less damage on last week’s wheat tour and weather.
“That crop tour did not show as much stress to the spring wheat as the pit expected. Also, the cooler weather and a bit of rain are keeping the rallies at bay,” Hawthorne-Lahre says.
“Because the Minneapolis wheat market was holding up the grain structure, and failed to break my second tier frame structure and came hard off the highs – this dampened the run up across the other wheats and corn,” she says.
The soybean market is hanging tough at $10.00 per bushel for the moment, and corn is comfortable at that $3.80ish level, she says.
“The clock is ticking on the corn and soybean crops now, and supplies seem adequate. It’s gonna be a long fall, unless something changes,” Hawthorne-Lahre says.