Soybeans close near limit down; drags corn and wheat lower 7/07/09

Published on: 18:00PM Jul 07, 2009
Sep 09 Corn
325 ½
- 9 ¼
Dec 09 Corn
335 ¾
- 8 ½
Aug 09 Beans
1053 ½
- 65
Nov 09 Beans
- 68
Sep 09 Wheat
512 ½
- 6 ¾
Sep 09 KC Wheat
- 7
Sep 09 Min Wheat
606 ¾
- 5 ¾
Dec 09 Meal
- 20
Dec 09 Oil
- 1.38

      Corn, soybeans and wheat all closed lower once again. Soybeans were again the weakest, closing 68-cents lower. Soybean meal led the soybean complex lower and closed limit down. Soybeans have now broken over $2 /bushel since June 1st and closed at the lowest level since April 1st. Corn and wheat were higher towards the end of the day, but the weak soybean market pulled them lower on the close. Good weather, weak outside markets and a lack of bullish news helped fuel the break today. I think we are seeing that although outside influences can determine the price of grains in the short-term, eventually the fundamentals do matter. Unfortunately, it seems that many farmers are now stuck holding onto unsold grain. There is a USDA report on Friday and maybe we will see some sort of rally before then. As a producer, you need to take advantage of any rallies to get caught up on sales. Soybeans gave you the chance to sell them 12-cents higher last night. If the soybean market liquidates like the corn and wheat markets did, those may be the only rallies we get for now. If the weather stays good and the outside markets remain weak, than corn, soybean and wheat should all continue to break. Nearby corn found support over the past few sessions as end-users have likely started to step up. Eventually, this could help the corn market find support but right now the market is in liquidation mode. Just like the market ignored bearish fundamentals on the way up, it will likely ignore bullish ones on the way down (once the bullish fundamentals show up). Hopefully those of you who read this letter have used our advice and hedged your crops before the break. If you need help in these markets, please give us a call. Although things look tough now, the market will always present opportunities. You just need to be ready when those opportunities present themselves.
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