Soft Commodities Price Watch: Corn Falls on Improved US Crop Outlook
iNVEZZ.com Thursday, July 18th: Grain futures edged lower today, with the corn price sinking to the lowest level since July 8 as updated weather forecasts eased concerns over potential crop damage in the United States.
According to Accuweather.com, a storm will move through the U.S. Corn Belt in the middle of next week, helping ensure rainfall will be near normal in most areas. Conditions have deteriorated as dry weather persisted, with the share of the crop that is rated good-to-excellent dropping to 66 percent as of July 14 from 68 percent a week earlier, government data showed this week.
The forecast for rains has pushed corn futures for September delivery 0.6 percent down to $5.3488 a
bushel on the Chicago Board of Trade (CBOT) today. The contract fell by as much as one percent earlier in the session to hit $5.3313 a bushel, a day’s low and the lowest price since July 8.
Elsewhere on the CBOT, soybeans futures for August delivery traded at £14.7263 a bushel, down 0.3 percent on the day. The contract was stuck in a range between $14.7025 and $14.7738 a bushel. The soybean price fell due to forecasts of cooler and wetter weather in the U.S. Farm Belt next week.
Among other grains, the wheat price for September delivery was at $6.6488 a bushel today, little changed on the day. The contract traded in a range between a session low of $6.6213 a bushel and a session high of $6.6563 a bushel.
**Sugar and Coffee Climb to Multi-Week Highs**
Coffee and sugar prices rose sharply today after updated weather forecasts fuelled concerns over potential crop damage in Brazil, the world’s largest producer of both soft commodities.
According to weather forecaster Somar Meteorologia, a cold front will bring rain to some sugar-cane producing regions of Brazil, potentially disrupting the harvest. Further boosting the sugar price, Brazil’s real climbed yesterday as Federal Reserve Chairman Ben Bernanke damped speculation that the U.S. central bank will curtail stimulus. A stronger real reduces incentives for millers to sell sugar priced in U.S. dollars.
Raw sugar for October delivery gained 0.5 percent to $0.1616 a pound on the ICE Futures U.S. today, after touching $0.1629 a pound, the highest for a most-active contract since July 11. White sugar for October delivery was up 0.6 percent at $462.50 a tonne on the NYSE Liffe in London.
!m[Sugar and Coffee Gain on Concerns over Brazil Crops](/uploads/story/4127/thumbs/pic1_inline.jpg)
In New York, Arabica coffee for September delivery traded at $1.2913 a pound, up 1.5 percent on the day. The contract rose by as much as 1.7 percent earlier in the day to hit a session high of $1.2943 a pound, the strongest level since June 7. Robusta coffee for September delivery rose 0.1 percent to $1,952 a tonne in London.
Among other soft commodities, the cocoa price for September delivery advanced 0.8 percent to $2,319 a tonne in New York today, while the NYSE Liffe contract for the same month gained 0.8 percent to £1,598 a tonne.
Elsewhere, the rubber price climbed to the highest level in more than a week as Japan’s currency declined against the dollar, raising the appeal of yen-denominated contracts. Rubber for delivery in December on the Tokyo Commodity Exchange (TOCOM) has so far today gained 2.42 percent to 253.6 yen a kilogram.
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