Chicago soybean ends sharply lower on bearish outside market
2011-05-04 17:47:31
The Chicago soybean futures dropped sharply on Tuesday, hit by the heavy sell-off in energy market and newly-gained strength in greenback. Corn extended losses on expectation of drier weather in U.S. Midwest. Wheat ended a tad higher.
The most active corn contract for July delivery decreased 10.75 cents, or 1.5 percent, to close at 7.2375 U.S. dollars per bushel. July wheat added 1.5 cents, or 0.2 percent, to 7.9325 dollars per bushel. July soybean lost 29.25 cent, or 2.1 percent, to 13.6375 dollars per bushel.
A trader mentioned that a combination of bearish outside market forces, including the mammoth silver's sell-off, weakness in energy and strong rally in U.S. dollar, all helped to add to the negative tone in the grain market.
"The day traded very much on the outside influence, with stronger dollar weakening the commodities complex, and oil coming off, most of these have been sparked by sell-off in equities," said Lincoln Ellis, the managing director of Linn Group Inc.
A trader mentioned that the speculations that some of the eastern and southern Corn Belt corn acres might need to shift to soybeans added downward pressure on the soybean market.
As for the wheat market, speculation that dry weather will damage winter crops in the U.S. Great Plains and Western Europe, along with the slow pace of spring wheat planting both contributed to provide support.
Corn continued to slide on trade expectations that drier weather this week in the U.S. Midwest will allow farmers to accelerate planting after rain and muddy conditions caused two weeks of delays.