SINGAPORE, May 16: Chicago corn lost more ground on Thursday as warm, dry weather across the U.S. Midwest boosted planting, while soybeans ticked higher after falling for two straight sessions.
Wheat was little changed after sliding 2.4 percent to its lowest in more than two weeks on Wednesday, under pressure from the strong dollar and poor demand for U.S. supplies.
‘Finally we will see some solid progress on corn planting this week, before it gets wet again over the weekend and pushes the farmers out of fields,’ said Joyce Liu, an analyst at Phillip Futures.
‘Soybean prices have been feeling the heat as Brazilian soybeans flow through the market and U.S. Demand weakens.’
Chicago Board of Trade July corn lost 0.1 percent to $6.50 a bushel by 0314 GMT. July wheat rose 0.1 percent to $6.94-3/4 a bushel. July soybeans added 0.2 percent to $14.15-1/2 a bushel.
Warm and dry weather in the U.S. Midwest will help boost corn plantings that have fallen to a record low pace, posing a threat to output prospects, agricultural meteorologists said.
Analysts expect the U.S. Government’s plantings report next week to show between 55 percent and 65 percent of corn areas have been planted, up from 28 percent seeded last week.
U.S. Fertilizer producer Mosaic Co expects U.S. Corn plantings to reach 95 million to 96 million acres in 2013, as farmers make up for time lost due to unfavourable spring weather.
The soybean market has been under pressure from poor demand in the United States and record supplies from Brazil, which is expected to emerge as the world’s top exporter this year, overtaking the United States.
Data from the National Oilseed Processors Association (NOPA) showed a bigger-than-expected slowdown in U.S. soybean crushing.
NOPA reported that the soybean crush fell to 120.11 million bushels in April, from 137.08 million in March. Analysts in a Reuters poll had expected a monthly crush of 125.5 million bushels, as processors slowed output because of tight supplies of old-crop soybeans.
Wheat ticked higher after steep losses in the last session, triggered by expectations of record global production and slowing demand.
Jordan’s state grains buyer made no purchase in a tender to buy 150,000 tonnes of milling wheat that closed on May 14, European traders said.
Commodity funds sold a net 5,000 Chicago Board of Trade corn contracts on Wednesday, trade sources said. They were even in soybeans and sold 4,000 wheat. (agencies)
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