Soft Commodities Price Watch: Corn Ends Two-Day Rally
U.S. corn price declined on Wednesday, June 19 as traders booked profits after a sharp two-day rally and worries about the Federal Reserve’s next monetary policy step weighed on prices.
The corn price for delivery in December on the Chicago Board of Trade (CBOT) fell 0.45 percent to $5.48 a bushel as of 03:24 GMT today, after rising more than three percent in the previous two sessions, the biggest such gain since late May. On Tuesday, the futures closed trading in Chicago 2.2 percent higher on concerns that cool and wet weather in parts of the U.S. may slow crop development. But worries over the fate of the U.S.’s bond-buying programme have roiled markets today. All eyes are now on the Fed’s two-day meeting that ends today. A Fed monetary policy statement and a news conference by Chairman Ben Bernanke are expected later in the day.
In addition, the U.S. dollar was firmer against a basket of currencies today, making commodities priced in the greenback expensive for holders of other currencies. Wheat fell alongside corn, while soybeans were little changed, drawing support from delays to new-crop plantings.
As of 14:50 GMT today, the wheat price for July delivery was 0.40 percent down at $6.84 a bushel, having closed up one percent on Tuesday on concerns over delays in harvesting the U.S. winter wheat crop.
Elsewhere on the CBOT, the soybean price was 0.19 percent down, trading at $12.87 a bushel, after having closed 0.3 percent higher in the previous session.
**Arabica Coffee Rises on Hopes of Increased Buying**
!m[Grain Market Declines, while Coffee, Sugar and Cocoa Gain](/uploads/story/3223/thumbs/pic1_inline.png)
Arabica coffee climbed for a second day in New York on speculation investors will ramp up bullish bets after Brazil, the world’s leading producer of the commodity, on Tuesday authorised credit lines to support growers.
According to U.S. Commodity Futures Trading Commission data compiled by Bloomberg, large and small speculators excluding index funds tripled bets on lower coffee prices in the four weeks to June 11. Boosting the prospect of further bullish bets, Brazil approved on Tuesday 3.16 billion-reais ($1.4 billion) in credit for coffee growers to fund activities including storage, purchases, option contracts and plantation recovery.
Arabica coffee for September delivery was up 0.3 percent at $1.239 a pound by 15:13 GMT today on ICE Futures U.S. in New York. Robusta coffee for September delivery gained 0.1 percent to $1,765 a metric tonne on NYSE Liffe in London.
Among other soft commodities, the raw sugar price for October delivery was 1.42 percent higher at $0.1730 a pound in New York, while the cocoa price for September delivery was up 0.24 percent at $2,215 a tonne on ICE.
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