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SINGAPORE, Aug 5: Chicago corn prices lost more ground on Monday, falling to the lowest since late 2010 on forecasts of crop-friendly weather across the U.S. Midwest, while soybeans edged higher on bargain-hunting after two weeks of deep losses.
Wheat rose for a second consecutive session as strong global demand underpinned the market, but gains were capped by weakness in corn.
The weather outlook continues to reinforce a bearish view on prices in agricultural markets, with rain and cool temperatures aiding crops and boosting hopes of record U.S. Supplies.
Widely scattered thunderstorms hit the U.S. Grain belt on Thursday, with the biggest storms bringing as much as 5 inches of rain in central and southeastern Nebraska, eastern Kansas and west-central Missouri.
Chicago Board of Trade new-crop December corn fell as much as 0.5 percent to $4.61-1/4 a bushel, the lowest since November, 2010. November soybeans added 0.4 percent to $11.85-3/4 a bushel.
Spot-month wheat gained 0.5 percent to $6.64 s bushel.
‘U.S. Weather has been quite favourable for corn production,’ said Vyanne Lai, agribusiness economist at National Australia Bank. ‘We are seeing support for wheat as Japanese have resumed imports of U.S. White wheat and export demand from China has been strong.’
Two private forecasters, FCStone and Lanworth, last week put the 2013 U.S. Corn crop above the current outlook of the U.S. Department of Agriculture.
INTL FCStone estimated U.S. 2013 corn production at 13.993 billion bushels, with an average yield of 157.0 bushels per acre.
Crop forecaster Lanworth said it expected the corn crop to be 14 billion bushels, based on an average yield of 158.5 bushels per acre.
Still, late planting has left much of the corn and soybean crop well behind schedule and vulnerable to damage if temperatures fall before harvest.
Large speculators increased their net short position in CBOT corn futures in the week to July 30, regulatory data released on Friday showed.
The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that noncommercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and cut their net long position in soybeans.
The wheat market is being supported by strong global demand for U.S. Supplies.
Japan bought nearly 90,000 tonnes of U.S. Western white wheat in a tender on Thursday, marking the first purchase of the variety by its top buyer after the discovery of a genetically modified version of the grain in Oregon.
Prices at 0230 GMT Contract Last Change Pct chg MA 30 RSI CBOT wheat 664.00 3.50 +0.53% 866.54 57 CBOT corn 463.25 -0.50 -0.11% 757.35 20 CBOT soy 1185.75 4.25 +0.36% 1570.07 29 CBOT rice $15.81 $0.01 +0.06% $15.50 56 WTI crude $106.94 $0.00 +0.00% $89.55 61 Currencies Euro/dlr $1.327 $0.098 USD/AUD 0.886 -0.169 Most active contracts Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight RSI 14, exponential (AGENCIES)
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