CORN: Corn futures tumbled Tuesday,
ending limit down following bearish crop
estimates from the USDA. “The corn—
what an astoundingly huge number,” said
Jack Scoville, vice president for Price
Futures Group. The USDA projected a
record crop size of 13.151 billion bushels,
with a whopping yield of 165.2 bushels per
acre. The trade has been expecting a crop
reduction due to the lousy weather to end
the 2009 growing season. Traders said that
after hovering close to resistance around
$4.25 for days, the market’s trend is now
lower. Prices fell the 30-cent daily limit on
the open and stayed there all day, and
traders said the market was another 10
cents lower in options trade. Wednesday’s
trading limit will be an expanded 45 cents.
March corn ended down 30 cents to $3.92
1/2 per bushel, and May corn ended down
30 cents to $4.03.
WHEAT: U.S. wheat futures closed
sharply lower on spillover selling from
limit-down CBOT corn and bearish data in
USDA crop reports. CBOT corn closed
down its daily 30-cent limit after the government
issued a huge U.S. production
estimate. Commodity funds were heavy
sellers in the grains and sold an estimated
8,000 wheat contracts at the CBOT, traders
say. USDA data had a bearish tone for
wheat because the government increased
its estimates for U.S. and world carryout
and lowered its forecast for U.S. wheat
exports, traders say. U.S. winter wheat
seedings were lower than expected but
large world supplies provide a “cushion”
against the decline, an analyst says. CBOT
March wheat closed down 36 3/4 cents at
$5.35 3/4 a bushel, KCBT March wheat
dropped 32 cents to $5.34, and MGE
March wheat sank 36 cents to $5.42.
SOYBEANS: Soybean futures dropped
to two-month lows on bearish U.S.
Department of Agriculture production forecasts.
Record U.S. soy production, larger
South American crop forecasts and the
threat of reduced export demand from
China sent prices spiraling lower. Spillover
weakness from a plunge in corn futures
added to the defensive theme, discouraging
buyers from stepping in front of the lower
trend, said Sid Love, analyst with Kropf &
Love Consulting. Technical pressure associated
with soy futures dropping below
major moving average support was another
feature extending the market’s downturn in
prices. Futures settled lower for the fifth
consecutive trading day. January soybeans
ended 32 1/4 cents lower at $9.69 1/4 a
bushel, and March soybeans settled 32 1/2
cents lower at $9.78.
SOYBEAN MEAL/OIL: Soy product
futures fell sharply in unison with soybean
futures. The combination of bearish
technical signals, the threat of higher global
soybean supplies and fear of slowing
demand from China pressured prices, analysts
say. Soyoil futures garnered additional
pressure from weak crude oil futures.
January soymeal ended $9.30 lower at
$295.40 per short ton, while March soymeal
settled at $10.30 lower at $285.80. January
soyoil fell 93 points, or 3%, at 38.26 cents
per pound, while March soyoil dropped 92
points, or 2.7%, to 38.63.
OATS: Oats futures ended sharply lower.
The USDA on Tuesday increased its U.S.
ending stocks projection for oats, and
slightly reduced its projected season average
farm price. March oats ended down 15
1/2 cents to $2.52 1/2 per bushel and May
oats ended down 15 1/4 cents to $2.61.
ending limit down following bearish crop
estimates from the USDA. “The corn—
what an astoundingly huge number,” said
Jack Scoville, vice president for Price
Futures Group. The USDA projected a
record crop size of 13.151 billion bushels,
with a whopping yield of 165.2 bushels per
acre. The trade has been expecting a crop
reduction due to the lousy weather to end
the 2009 growing season. Traders said that
after hovering close to resistance around
$4.25 for days, the market’s trend is now
lower. Prices fell the 30-cent daily limit on
the open and stayed there all day, and
traders said the market was another 10
cents lower in options trade. Wednesday’s
trading limit will be an expanded 45 cents.
March corn ended down 30 cents to $3.92
1/2 per bushel, and May corn ended down
30 cents to $4.03.
WHEAT: U.S. wheat futures closed
sharply lower on spillover selling from
limit-down CBOT corn and bearish data in
USDA crop reports. CBOT corn closed
down its daily 30-cent limit after the government
issued a huge U.S. production
estimate. Commodity funds were heavy
sellers in the grains and sold an estimated
8,000 wheat contracts at the CBOT, traders
say. USDA data had a bearish tone for
wheat because the government increased
its estimates for U.S. and world carryout
and lowered its forecast for U.S. wheat
exports, traders say. U.S. winter wheat
seedings were lower than expected but
large world supplies provide a “cushion”
against the decline, an analyst says. CBOT
March wheat closed down 36 3/4 cents at
$5.35 3/4 a bushel, KCBT March wheat
dropped 32 cents to $5.34, and MGE
March wheat sank 36 cents to $5.42.
SOYBEANS: Soybean futures dropped
to two-month lows on bearish U.S.
Department of Agriculture production forecasts.
Record U.S. soy production, larger
South American crop forecasts and the
threat of reduced export demand from
China sent prices spiraling lower. Spillover
weakness from a plunge in corn futures
added to the defensive theme, discouraging
buyers from stepping in front of the lower
trend, said Sid Love, analyst with Kropf &
Love Consulting. Technical pressure associated
with soy futures dropping below
major moving average support was another
feature extending the market’s downturn in
prices. Futures settled lower for the fifth
consecutive trading day. January soybeans
ended 32 1/4 cents lower at $9.69 1/4 a
bushel, and March soybeans settled 32 1/2
cents lower at $9.78.
SOYBEAN MEAL/OIL: Soy product
futures fell sharply in unison with soybean
futures. The combination of bearish
technical signals, the threat of higher global
soybean supplies and fear of slowing
demand from China pressured prices, analysts
say. Soyoil futures garnered additional
pressure from weak crude oil futures.
January soymeal ended $9.30 lower at
$295.40 per short ton, while March soymeal
settled at $10.30 lower at $285.80. January
soyoil fell 93 points, or 3%, at 38.26 cents
per pound, while March soyoil dropped 92
points, or 2.7%, to 38.63.
OATS: Oats futures ended sharply lower.
The USDA on Tuesday increased its U.S.
ending stocks projection for oats, and
slightly reduced its projected season average
farm price. March oats ended down 15
1/2 cents to $2.52 1/2 per bushel and May
oats ended down 15 1/4 cents to $2.61.
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