Soft Commodities Price Watch: Corn Hits 32-Month Low
iNVEZZ.com Monday, July 8th: Grain futures were mixed today with corn trading just above its lowest price in 32 months amidst easing concerns over U.S. crop prospects.
The corn price for September delivery on the Chicago Board of Trade (CBOT) has risen 0.4 percent to $5.2875 a bushel so far today. Earlier in the day, however, the September contract fell to a session low of $5.2513 a bushel, the lowest price since November 23, 2010.
Corn prices have been under pressure in recent sessions after the U.S. Department of Agriculture (USDA) said last week that U.S. corn acreage will total 97.4 million acres in the current market year, the most since 1936 and up slightly from last year.
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Elsewhere on the CBOT, the soybean price for August delivery was $14.2863 a bushel, down 0.2 percent on the day, while the wheat price for September delivery was up 0.3 percent, trading at $6.6200 a bushel. In Paris, milling wheat for November delivery fell 0.6 percent to €193.50 a tonne on NYSE Liffe.
Wheat prices remained supported amidst expectations of increased demand for U.S. supplies. The USDA said on Friday last week that U.S. farmers had sold 120,000 metric tonnes of soft red winter wheat for delivery to China during the 2013-14 marketing year. The news came after the agency reported sales of 360,000 tonnes of U.S. wheat to China earlier in the week.
**Sugar and Cocoa Resume Gains**
The sugar price rebounded from a three-week low today as investors returned to the market to seek cheap valuations amidst speculation that prices had fallen too drastically.
On the ICE Futures U.S. Exchange, sugar futures for October delivery traded at $0.1631 a pound, up 0.4 percent on the day after falling to a three-week low of $0.1623 a pound on Friday last week. White sugar for October delivery today gained 0.2 percent to $473.70 a tonne on the NYSE Liffe in London.
In New York, the sugar price has declined for six straight sessions leading up to today, as farmers in top producer Brazil started to accelerate harvesting of the nation’s sugar cane plantations. Brazilian industry group Datagro said on Friday that the country’s main growing region was likely to produce 35.3 million metric tonnes of sugar in the current season, more than the 34.1 million tonnes of sugar produced in the last season.
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Cocoa also resumed gains today as traders boosted bets on a price rally later in 2013, adding to speculation the next crop in West Africa, the main growing region, will be delayed. Cocoa for September delivery on the ICE Futures U.S. in New York today gained 0.3 percent to $2,211 a tonne, after falling 1.2 percent on Friday. In London, the September contract advanced 0.5 percent to £1,533 a tonne by 10:46
BST on the NYSE Liffe in London today, after sliding 0.4 percent in the previous trading session.
Among other soft commodities, Arabica coffee for September delivery traded at $1.2140 a pound, up 0.5 percent on the day, while the Robusta coffee price for September delivery fell 0.6 percent to $1,798 a tonne in London.