Farm markets close sharply lower

CHICAGO, Illinois (Agriculture.com)--Concerned spiking energy prices could slow global growth, big investors turn away from ag markets, settling CME Group grain and soybean prices lower Monday.

The May corn futures settled 10 1/2 cents lower at $7.17 1/2. The May soybean contract closed 19 cents lower at $13.95.  The May wheat futures ended 31 1/2 cents lower at $8.00 3/4. The May soymeal futures settled $6.30 lower per short ton at $363.40. The May soyoil futures finished $0.38 lower at $59.10.

In the outside markets, the NYMEX crude oil is $1.03 per barrel higher, the dollar is higher, and the Dow Jones Industrials are down 80 points.

Terry Roggensack, The Hightower Report, says the grain markets are following the stock market more than the energies. The result is negative.

"The general shift of big fund traders going away from ag markets towards energy is pushing the grains lower. There is a concern the ag's have been overbought and energy price spikes will impact consumer spending power, resulting in a slowdown of global growth," Roggensack says. "Pressure for agricultural markets will feel these factors.'

In addition, there is a lot of concern about the March 11, 2011, protests scheduled in Saudia Arabia. "The Day of Rage" has the market very nervous, this week, he says.

Tim Hannagan, PFGBest.com senior grain analyst, says any momentum the grains had coming into the week went away quickly. "Profit-taking entered as longs took gains and cut risk, prior to Thursday's USDA Crop Report," Hannagan says.

Hannagan adds, "Tuesday should see speculators buying, expecting a friendly crop report. So, a lot of positioning and posturing prior to the report's release."

Other market factors that traders consider to be bearish are the rains in Argentina, the end of the Argentine port strikes, and the ability of Argentine exporters to move crops.

(Source: http://www.agriculture.com/markets/analysis/corn/grain-soy-markets-puke_9-ar15183)