Grains continue lower Tuesday for a third day, with cattle also falling.
Randy Martinson, Martinson Ag, says grain markets are seeing pressure from harvest, weather and renewed fund selling.
South America has seen some light rain and there is more in the extended forecast which has traders taking out weather premium.
Grain futures are at important chart areas where technical support needs to hold or they could see a deeper selloff.
In fact, if December corn breaks $4 it could possibly retest the contract low at $3.85.
Martinson says November soybeans are already below the 50 day moving average and closed below $10 and are also vulnerable to retesting the contract low back at $9.55 from August.
CONAB also released estimates for Brazil soybean production at 166.05 million metric tons versus USDA’s 169 but either way it would be a record.
The agency also projected Brazil corn production at 119.7 million metric tons.
Wheat is also seeing selling tied to better weather conditions in the Black Sea, Argentina and forecasted rains for the Southern Plains.
However, there has been some export demand on the lower prices with China buying 4.85 million bushels of soybeans this morning and a flash sale of 4.4 million bushels of Soft Red Winter wheat going to Mexico.
Cattle are lower on profit taking as they are overbought and hedge selling is also a factor.
Lean hog futures are rebounding on short covering as funds defend their long position and cutouts were stronger.
