Grains sharply lower in Chicago

Grain futures were sharply lower on the Chicago Board of Trade Monday with the dollar index flat and equities, if anything, even flatter. Corn was off 18 3/4 to off 20 3/4, soybeans were off 41 to off 48 1/2, wheat off 28 to off 29 was and oats were off 4 to off 4 1/2. Grains were at the mercy of the market, as the U.S Department of Agriculture was closed for the Veterans Day holiday. The Energy Information Agency shook commodities markets, however, with a report that said the United States would become the world's largest oil producer by 2020. The oil market has a direct influence on grain futures. On one hand, cheap oil favors a stronger economic recovery. On the other hand, cheap oil can encourage driving and a higher demand for gasoline means a higher demand for corn-based ethanol, a gasoline component. In turn, corn, wheat and soybeans are all used as animal feeds, so high demand for corn for ethanol diminishes supplies of feed corn, which impacts wheat and soybeans. Today's prices: Corn: Dec 7.18 off 20 3/4, Mar 7.23 1/4 off 19 3/4, May 7.19 1/2 off 19 1/4, Jly 7.10 1/4. Soybeans: Nov 14.11 off 41, Jan 14.05 off 46 1/4, Mar 13.88 off 48 1/2, May 13.75 1/2 off 43 3/4. Wheat: Dec 8.57 3/4 off 28 3/4, Mar 8.72 1/2 off 29, May 8.79 1/4 up 28 3/4, Jly 8.60 1/2 off 28. Oats: 3.59 1/4 off 4 1/4, Mar 3.68 off 4, May 3.67 1/2 off 4 1/2, Jly 3.64 1/2 off 4 1/2.