Wednesday Was a Down Day For Commodity Futures

By CnAgri2012-09-27 19:47:40 Print

Corn, soybeans and wheat all closed lower after a volatile day of trading on Wednesday. Doane Advisory Services reports that a combination of factors pulled corn futures lower.

Commodity markets tumbled as the euro zone debt crisis pushed the dollar index higher sparking moderate sell offs of risky assets by investors. Harvest pressure and waning demand for U.S. corn remain burdensome for the market. Lastly, pre positioning ahead of USDA's quarterly stocks and small grains report also adversely affected the market. The average of trade estimates is pegged at 1.113 billion bushels, down from 1.128 billion bushels a year ago. December corn closed 18 cents lower.

Outside market pressure was the driving force behind tumbling soybean prices. The euro zone debt worries sent outside markets spiraling downward as investors liquidated their portfolios of risking assets. USDA announced export sales of 140,000 tonnes of soybeans to an undisclosed location for delivery in 2012/12, but its effect on prices were minimal at best. Soyoil and soymeal markets also closed lower. Soyoil closed $1.44 lower while soymeal closed $9 lower. November soybeans closed down 37 1/2 cents.

As expected, wheat futures followed the other grain markets lower. December wheat closed 17 1/2 cents lower at CBOT; 16 1/2 cents lower at KCBT; and 12 3/4 cents lower at MGE.