Continuing consolidation and low volatility pushed down prices early Wednesday for corn, soybeans and wheat.
“Volatility levels are the lowest they’ve been since the spring, so we could just be in for something similar to what we saw this last winter, which is a range-bound market,” observed Joe Vacalik of the blog Standard Grain.
In early trading on Wednesday, December corn futures slipped 1 ¾ cents at $3.35 ½, December soybean futures slid 5 ¾ cents at $10.07 ¾, December Chicago wheat fell 1 ½ cents at $4.26, and December Kansas City wheat declined 3 ¼ cents at $4.30 ¼.
Farmer selling continued to cap rallies in the corn market. A lot of old crop still needs to move, and a record amount of new crop that needs to be sold, Vaclavik noted.
Another factor keeping the markets range-bound was the fact that funds were unlikely to add to their short positions in a down market, according to Vacla.
Wheat also was under pressure from a big selloff Tuesday after Canada announced near record wheat production estimates, he observed.
Although discrepancies are continuing to emerge between USDA and Pro Farmer Crop Tour yield estimates, they are unlikely to move the market, according to Vaclavik.
On Tuesday, the Pro Farmer crop tour put the estimated Nebraska yield just under 159 bushels per acre, compared to USDA’s estimate of 187 bushels per acre. ProFarmer pegged Indiana at 173 bushels per acre, compared with USDA at 187 bushels per acre.
Listen to Vaclavik’s full commentary here: