Corn moves limit down, steep losses for soybeans
Soybeans closed sharply lower with the July contract down 118 and ¾ and the August contract losing 107 on the day. Soybean trading limits were expanded Thursday after soybean oil traded limit down Wednesday. The soybean complex might continue to follow continued losses on the soy oil front. Rumors of reduced biofuels targets have been bearish for the market. But soybean sales are up from the previous week with increases in sales to Japan, Colombia, and Indonesia. Crush margins remain strong with an opportunity to lock in profits. Soybean trade will continue watch weather reports showing dry, hot patterns.
Corn closed limit down (40 cents) keeping on track of four consecutive trading days of new crop futures closing lower. A significant drop in export sales was bearish for the corn market. USDA says corn sales were down 91 percent from the previous week and 95 percent from the prior four-week averages. Rumors of reduced blending targets are also pushing bearish movement. Traders will continue to be focused on upcoming weather both in the U.S. and Brazil. Expected hot temperatures in key growing states could limit the recent bearish trend within the corn market. Dry weather in Brazil could help bring bullish optimism as drought conditions continue to hurt the competitor’s second crop corn.
The wheat complex turned fully lower on weather concerns. July Kansas City led the way, losing 25 and 1/2, July Chicago also closed more than 20 down Thursday at 23 and 3/4. July Minneapolis traded steady for most of the day before closing 9 lower. Even with improved rainfall, the spring crop is expected to take yield losses. Harvest pressure has been bearish for the market.