Grain markets end lower on Friday with wheat as the anchor.
Corn and soybeans were unable to extend the big gains from Thursday.
Darren Frye, Water Street Solutions, says pressure in the grain complex was tied to technical selling as the funds pounced on those higher closes in corn and soybeans on Thursday. He says speculators look like they are re-establishing their short positions at least in the corn and soybean markets.
“They are selling on any rally,” he says.
All of the grains held support areas on Friday. However, he isn’t sure if funds will continue to sell next week and take those areas out or if they will hold as traders even up positions going into Wednesday’s WASDE.
Corn could not build on the key reversal up on Thursday and traders seemed to ignore the 3.8-million-bushel flash sale of soybeans to China and the hot dry extended weather forecasts.
Wheat was the anchor and also pulled down corn and soybeans. Wheat has been correcting after big gains in May and news that Turkey would ban imports of wheat also seemed to throw negative psychology on the market according to Frye.
Seasonal or harvest pressure and better than expected wheat yields are also dragging down the wheat.
All of the grains reacted to the strength in the dollar which was up sharply with the non-farm payroll coming in higher than expected at 272,000.
