Soft Commodities Price Watch: Grains Shed Some Gains

on Jul 17, 2013
Listen Wednesday, July 17th: With concerns over U.S. crop prospects persisting, grain futures were little changed today. Prices shed some gains following the previous session’s sharp rally.

Corn remains in focus, as the US crop is entering the pollination period when drought and high-temperature stress can hurt the yield potential. “Market participants are concerned about a pollination problem,” Makiko Tsugata, an analyst at Market Risk Advisory in Tokyo, said in an e-mail to Bloomberg today.
After rising more than one percent in the last trading session, the corn price for September delivery on the Chicago Board of Trade (CBOT), was $5.4525 a bushel, down 0.1 percent on the day. The contract

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traded in a range between a daily high of $5.4888 a bushel and a session low of $5.4450 a bushel.
The soybean price for August delivery was also 0.1 percent down at $14.7400 a bushel. The contract was stuck in a range between $14.7250 and $14.8063 a bushel. Elsewhere on the CBOT
wheat for September delivery traded at $6.7113 a bushel, up 0.2 percent on the day, with the contract trading in a range between $6.6738 and $6.7400 a bushel.

**Sugar at Three-Year Low, While Coffee Remains on the Up**
Sugar prices extended losses and traded at the lowest level in three years today as farmers in top grower and exporter Brazil started to accelerate crop harvesting and a millers group forecast a record harvest in Thailand, the second-biggest exporter of the commodity. In addition, according to a Bloomberg survey, the crop in India, the second-largest grower, will top demand after the best start to the monsoon in more than a decade.

!m[Sugar Trades at Three-Year Low, While Coffee Advances](/uploads/story/4086/thumbs/pic1_inline.jpg)
On the ICE Futures U.S. Exchange, raw sugar futures for October delivery traded at $0.1598 a pound, little changed on the day, after touching $0.1593 a pound, the lowest for a most-active contract since July 2010. On the NYSE Liffe in London, the white sugar price for October delivery was down 0.4 percent today at $458.80 a tonne, after sinking to $458.40 a tonne — the lowest level since June 2010.

Among other soft commodities, coffee prices rallied to a seven-week high as market players kept their eyes on the Brazilian real, whose strengthening spurs a rise in the coffee price.
Arabica coffee for September delivery today traded at $1.2690 a pound, up 1.4 percent on the day. The contract rose by as much as 1.5 percent earlier in the day to hit a session high of $1.2703 a pound, the highest level since June 12. Robusta coffee for September delivery gained 0.4 percent to $1,953 a tonne in London, after rising to $1,965 a ton yesterday, the highest for a most-active contract since May 24.
Cocoa for September delivery gained 0.9 percent to £1,597 a tonne in London, the highest for this contract since December 4, while in New York the same-month contract advanced 1.1 percent to $2,315 a tonne.


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