Grain, Soybean Futures Retreat On Forecasts for Weekend Rain
April 28, 2011
CHICAGO -- Grain and soybean futures prices fell sharply Friday on the Chicago Board of Trade after forecasts for widespread weekend rains caused a stampede out of the market. Corn and soybean futures were the hardest hit by the sell-off, which came after midday weather forecasts predicted about a half-inch of rain will fall in dry growing regions of Illinois over the weekend. The storms were expected to cover as much as 80% of corn and soybean fields, forecasters said. Prices seesawed throughout the day as investors tried to sort through conflicting forecasts. The National Weather Service's 10-day forecast calls for hot, dry weather, while private forecasters each had varying degrees of rain predicted. ``The market was following five different forecasts and moving each and every way trying to figure them out,'' said Williemae Bibbs, research director at Allendale Inc. in Crystal Lake, Ill. ``When all the forecasters said it looks like Illinois will get rain over the weekend, all the bulls were trying to get out the same door.'' Wheat futures fell on the weakness on other markets and on reports that spring wheat harvesting in North Dakota is revealing good yields. Wheat for December delivery fell 5 cents to $4.57 a bushel; December corn fell 6.25 cents to $3.43 a bushel, while the spot September contract fell 8 cents to $3.675 a bushel; December oats fell 5.75 cents to $1.89 a bushel; and November soybeans fell 7.25 cents to $7.7675 a bushel. Meat and livestock futures price bounced back from several consecutive days of losses on the Chicago Mercantile Exchange. October live cattle rose 1.43 cents to 71.45 cents a pound; October feeder cattle rose 0.73 cent to 63.50 cents a pound; October live hogs rose 0.70 cent to 55.15 cents a pound; and February frozen pork bellies rose the limit 2 cents to 84 cents a pound. In other commodity markets: ENERGY: Crude oil and other energy futures moved higher on the New York Mercantile Exchange. September crude oil jumped 76 cents to settle at $22.66 a barrel, a new closing contract high. October crude oil jumped 65 cents. The buying in crude oil intensified after the September contract moved decisively above $22 a barrel. September unleaded gasoline climbed 1.42 cents to 63.38 cents a gallon. September heating oil jumped 1.95 cent to 61.63 cents a gallon, surpassing the previous lifetime high of 60.90 cents hit Wednesday. Traders said there wasn't any significant news to lift prices. Instead, they said the advance was a continuation of a rally that began in late July. PRECIOUS METALS: Precious metals settled lower on the Comex division of the Nymex, led lower by weakness in platinum and palladium. Gold for December delivery lost 30 cents to $391.40 an ounce, September silver fell 1 cent to $5.077 an ounce, October platinum fell $2.80 to $401.50 an ounce and September palladium lost $2.75 to $125.05 an ounce. Traders attributed the sharp drop in palladium to rumors that General Motors intends to decrease the amount of palladium it uses to make vehicle catalytic converters. A spokesman for General Motors couldn't immediately be reached for comment.
