DES MOINES, Iowa - On Wednesday, the CME Group’s farm markets close mostly lower.
At the close, the Sep. corn futures closed 5½¢ lower at $3.59¾. Dec. corn futures closed 5¾¢ lower at $3.68¾.
Nov. soybean futures finished 1¾¢ higher at $8.55¾. Jan. soybean futures ended 1¾¢ higher at $8.68¼.
Dec. wheat futures settled 6¢ lower at $4.66½.
Dec. soymeal futures ended $2.30 per short ton higher at $299.50. December soy oil futures settled 0.25¢ lower at 28.79¢ per pound.
In the outside markets, the NYMEX crude oil market is $0.15 higher, the U.S. dollar is lower, and the Dow Jones Industrials are 103 points lower.
Dustin Johnson, AgYield senior strategist, says that today’s mostly lower markets are a result of rain events.
“Favorable rains through Iowa and Illinois, again overnight, likely spurred early corn and soybean selling from overnight strength. Crop tour results are showing a large drop in soybean pod counts in first day of tour, whereas corn yields down, but in line with USDA on a percentage basis,” Johnson says.
Al Kluis, Kluis Advisors, says investors are mixed on the markets.
“Weekend rain in the dry areas of the central Corn Belt and improved weather forecast put pressure on the grain markets on Monday. Corn futures closed 6¢ lower, soybean futures closed 13¢ lower, wheat futures closed 2¢ to 5¢ lower. The USDA Crop Progress Report showed corn and soybean ratings dropping by 1%, which is positive for prices in the overnight markets,” Kluis told customers in a daily note.
Kluis added, “What is next for the bull spreads in the corn market? Right before the bull market first started in May, the bull spreads started to pull in. Then – as prices approached the high in the third week of June – the bull spreads collapsed, signaling a top. The spreads were flat on Monday. However, long term, when the bull spreads start working, it will signal that corn prices are turning higher.”