Soft Commodities Price Watch: Grains and Soybeans Retreat as Planting Concerns Ease

on Jun 4, 2013
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Wheat and soy prices came under pressure on Tuesday, June 4 amid easing concerns over U.S. planting prospects. As of 07:49 ET the corn price for December delivery on the Chicago Board of Trade (CBOT), was $5.4925 a bushel, down 1.92 percent on the day after the U.S. Department of Agriculture (USDA) said on Monday that 91 percent of the U.S. corn crop had been planted by the end of last week, up from 86 percent planted in the preceding week. The five-year average for this time of the year is 95 percent.

CBOT wheat price for July delivery traded 1.13 percent down at $7.0075 a bushel. This followed a three-week high reached on Monday, when wheat futures traded at $7.1437 a bushel amid ongoing concerns over crop prospects raised by persisting rainfalls in the U.S. Easing farmers’ and traders’ worries over waterlogged soils and their effect on yields, the USDA announced on Monday that the condition rating for winter wheat had improved one notch to 32 percent seen in “good” to “excellent” health, albeit well below the 52 percent a year ago.

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Elsewhere on the CBOT, the soybean price for up-front contract traded at $15.2050 a bushel, down 0.78 percent on the day, after the oilseed rallied on Monday to re-approach its highest level since November. The USDA revealed continued planting hiccups in many states thanks to persistent rains, containing soybean sowings to 57 percent completion. While still behind the 74 percent of the crop typically in the ground by this time of the year, the figure marked a 13 points improvement in a week.

**Cocoa Futures Dip as West Africa Boosts Production**
!m[Department of Agriculture (USDA) said on Monday that 91 percent of the U.S. corn crop had been planted by the end of last week.](/uploads/story/2746/thumbs/pic1_inline.png)
The cocoa price in New York declined on Tuesday on improved outlook for crops in West Africa, the world’s largest producing region of the beans. Cocoa for delivery in July fell 0.3 percent to $2,241 a tonne by 08:21 ET on the ICE. In London, futures for delivery in the same month declined 0.2 percent to £1,504 a tonne on NYSE Liffe.

So far this year, cocoa has added 4.8 percent in London and 0.2 percent in New York, making for one of six raw materials that have gained this year as the Standard & Poor’s GSCI gauge of 24 raw materials declined. But forecasts for a favourable amount of rain in West Africa, which accounts for about 70 percent of the world’s cocoa output, will help output to exceed demand, thus weighing on the price. Cocoa bean deliveries to ports in leading grower Ivory Coast from the start of the season on October 1 through June 2 were estimated 6.4 percent higher than a year earlier, according to KnowledgeCharts, a unit of Commodities Risk Analysis.
The sugar price for July delivery on the CBOT was slightly down on Tuesday, in line with the broader market, while front-month ICE cotton price was almost one percent up.

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Cotton Soybeans Agriculture Commodity