Soft Commodities Price Watch: Corn Extends Losses on Easing U.S. Crop Concerns
iNVEZZ.com Monday, July 15th: Grain futures were broadly lower today, with corn prices coming under heavy selling pressure amid reduced concerns over U.S. crop prospects.
According to weather forecasts provider DTN, parts of the Midwest may have near to below-normal rainfall later this week, and hot weather may cease for several days. “The better weather forecast meant traders focused on Thursday’s modestly bearish USDA WASDE report which included a surprise upward revision to U.S. corn inventories,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, wrote in a report today, referring to the U.S. Department of Agriculture’s latest World Agricultural Supply and Demand Estimates release.
On the Chicago Board of Trade (CBOT), the corn price for September delivery traded 1.2 percent lower at $5.3788 a bushel following a 1.35 percent slump earlier in the day to a session low of $5.3713 a bushel — the lowest level since July 9. The corn contract for delivery in December also lost as much as 1.1 percent to $5.035 a bushel, following a 3.4 percent loss on Friday, the most at close since June 28. The grain rose 3.7 percent last week, the first gain in three weeks, on speculation that warmer, drier weather in the U.S. Midwest will increase stress on the crop.
The wheat price tracked corn futures lower today. The September contract on the CBOT traded at $6.7013 a bushel, down 1.5 percent on the day, after falling by as much as 1.7 percent earlier in the session to hit a daily low of $6.6850 a bushel.
Elsewhere on the CBOT, soybeans futures for August delivery traded at $14.2800 a bushel, little changed on the day. The contract held in a range between a session low of $14.1975 a bushel and a session high of $14.3188 a bushel.
**Sugar and Cocoa Slump**
!m[Sugar Hits Three-Year Low as Brazil Steps up Harvesting](/uploads/story/3998/thumbs/pic1_inline.jpg)
The sugar price fell to a three-year low as farmers in top producer Brazil stepped up sugar cane harvesting. On the ICE Futures U.S. Exchange, sugar futures for October delivery traded at $0.1605 a pound, down 0.2 percent on the day, after falling by as much as 0.3 percent earlier in the day to hit a session low of $0.1604 a pound — the lowest level since July 2, 2010. White sugar for October delivery fell 0.1 percent to $460.90 a tonne on the NYSE Liffe in London today.
Among other soft commodities, the cocoa price declined for a second day in New York as rain in Ivory Coast eased concerns that dry weather would hurt the development of the next crop. ICE Cocoa for September delivery retreated 0.6 percent to $2,223 a metric tonne, while in London the contract was little changed at £1,546 a metric tonne. Elsewhere, Arabica coffee for September delivery in New York traded at $1.1933 a pound, up 0.2 percent on the day, while Robusta coffee for September delivery fell 0.6 percent to $1,864 a tonne on the NYSE Liffe in London.
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