On Thursday, the agricultural markets of the CME group closed more weakly, but down from their daily lows.
At the close, September corn futures ended lower at $ 7 to $ 5.64½. December new crop futures closed lower at $ 7 to $ 5.61½. Maize futures in March ended down $ 6 to $ 5.68½.
Soybean futures in August closed 23 ¢ lower at $ 14.16.
Soybean futures in September ended lower 28½ ¢ to 13.69¾. Soybean futures from the November new crop ended down 27 at 13.62 ¾.
September wheat futures closed down 18 to 6.92.
Soybean meal futures in August closed at $ 6.60 per short ton at $ 363.20.
Soybean oil futures in September were down 0.69 to 63.53 a pound.
In foreign markets, the NYMEX crude oil market is 1.40 (+ 1.99%) higher at $ 71.70. The US dollar is higher and the Dow Jones Industrials is down 55 points (+ 0.16%) to 34,853 points.
Separately, the USDA’s weekly export sales report on Thursday shows weak demand figures for corn.
Maize = 136,200 metric tons (mt) compared to commercial expectations of 100,000 to 400,000 mmt.
Soybeans = 238,300 mt. compared to the expectations of the trade of 150,000 to 500,000 mt.
Wheat = 478,200 tonnes. compared to the expectations of the trade of 350,000 to 600,000 mt.
Soybean meal = 87,400 mt. compared to the expectations of the trade of 100,000 to 300,000 mt.
Jack Scoville of the PRICE Futures Group says today’s price movement is wild.
“We are selling in response to the European weather model which adds rain in the 11 to 15 day period. Hot and dry before that, but some relief may be in sight. The American weather model remains dry. So the 10-day model change is still far from being confirmed, but it was enough for the funds to sell out today. The price action looks lousy today, but who knows – maybe back up tomorrow, ”says Scoville.
Al Kluis Kluis Advisors says the markets will go up and down based on the weather forecast for the Corn Belt.
“Grain traders continue to monitor hourly weather updates and how long it will stay warm and how far the thermal dome is moving east. The forecast this morning takes away extreme heat and brings more rain at the end of the six to ten day forecast, ”Kluis said in a note to customers.
Kluis added: “This week’s US Drought Monitor (to be released today) will show the drought is spreading further east and south. Now, most of Minnesota and parts of northern Illinois and Nebraska will experience moderate to severe drought to extreme drought. ”