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Veteran Advisor

Re: From the floor May 14

At mid-session:

The July corn futures are 9 1/4 cents lower at $3.68 1/2.  The July soybean futures contract is 9 1/4 cents lower at $9.55 1/4 per bushel. The July wheat futures are 6 cents lower at $4.73 1/4. July soybean meal futures are $0.21 per short ton lower at $279.30 per short ton. The July soyoil futures are 55 points lower at $37.50.

In the outside markets, the NYMEX crude oil is $3.11 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 198 points as the euro sinks.

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Contributor

Re: From the floor May 14

 

Hi

Are fundmentals in beans stronger than expected??

 

The "collapse " in oil seems to bigger than pricedrop in beans??

 

bw

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Veteran Advisor

Re: From the floor May 14

At the close:

The July corn futures settled 10 cents lower at $3.63.  The July soybean futures ended 11 cents lower at $9.53 1/2 per bushel. The July wheat futures closed 7 1/2 cents lower at $4.71 1/2. July soybean meal futures finished $4.60 per short ton lower at $276.80 per short ton. The July soyoil futures closed 54 points lower at $37.51.

In the outside markets, the NYMEX crude oil is $2.86 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 201 points as the euro sinks.

 

One analyst stands by what he said earlier regarding the falling crude oil prices causing sell-offs in the grain markets. Plus, trend-following index funds and traders were getting out of their long market positions, ahead of the weekend. "This week, corn and soybeans came down near their trendlines on the charts. For example, July corn has major support at $3.60 and we saw it trade at $3.62. Soybeans have support at $9.48 and we saw a week low at $9.51 1/4. So, after nearing the high-end of their range early in the week, the corn and soybeans ended the week near their technical support levels. He says there are those that say well these markets are not breaking out to the upside. But, they are not breaking out to the downside either. This is just the time of the year we're in. The market seems to want to trade in these 20-cent volatile ranges, with uncertain weather, but mostly from pressure from trend-following and index funds. No real seemingly direction to the market. But, we're going to get there. We're getting pressure from the outside markets, but we're also seeing strength too. This week we saw very important increases in corn/soybean demand. So, we're not dropping to the downside because demand is holding us up with China being the hallmark with their soy and corn buying. Next week, the market is expected to price in the demand-side. Maybe start out lower next week, but end the week marginally higher," he says. 

Mike

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