Soft Commodities Price Watch: Corn Futures Extend Losses
iNVEZZ.com Friday, July 19th: Corn extended its recent slump to the last day of the trading week, falling for a third consecutive session on Friday on signs that cooler, wetter weather in parts of the U.S. will improve crop conditions for the world’s largest grower.
According to weather forecaster DTN, temperatures that reached 96 degrees Fahrenheit (36 degrees Celsius) yesterday in the U.S. Midwest, the main corn and soybean growing region, will begin dropping tomorrow, and some areas may see “scattered light to locally moderate showers.” This forecast weighed on the corn price, which has shed more than two percent so far this week. After reaching its lowest level since July 8 yesterday, corn for December delivery on the Chicago Board of Trade (CBOT) today shed another 1.1 percent to $4.9525 a bushel as of 14:44 BST.
Elsewhere on the CBOT, the soybean price for November delivery rose 0.2 percent to $12.6775 a bushel and remained poised for a second weekly gain. The wheat price also rose as Egypt, the world’s largest wheat importer, agreed to buy 300,000 tonnes of the grain in a tender yesterday, with supplies coming from Russia, Romania and Ukraine. The purchase sent the wheat price for delivery in September 0.3 percent higher to $6.625 a bushel today, trimming this week’s decline to 2.7 percent. Milling wheat for November delivery in Paris fell 0.1 percent to €194 a metric tonne on the NYSE Liffe.
**Coffee Prices Jump, While Cocoa Hits Eight-Month High in London**
Robusta coffee today advanced for a fifth day in London and Arabica rebounded as frost fears emerged in top grower Brazil. According to MDA Weather Services, frost will be a “significant threat” in Brazil on July 23 and July 24, mostly across the southern fringes of coffee growing areas. This forecast sent the Arabica coffee price for September delivery 1.2 percent higher to $1.2905 a pound in New York on the ICE Futures U.S. Robusta for September delivery also jumped 0.9 percent to $1,987 a metric tonne on the NYSE Liffe in London.
!m(/uploads/story/4175/thumbs/pic1_inline.jpg)Cocoa in London climbed as much as 0.8 percent to £1,605 a tonne, the highest price for a most-active contract since November 15. In New York, the cocoa price jumped one percent to $2,370 a tonne. White, or refined, sugar was unchanged at $463.90 a tonne in London, while ICE raw sugar advanced 0.2 percent to $0.1621 cents a pound.
Among other soft commodities, rubber is set for the largest weekly gain in nearly two months as oil climbed and a weakening Japanese yen improved the appeal of yen-denominated contracts today.
Rubber for delivery in December on the Tokyo Commodity Exchange (TOCOM) surged as much as 5.8 percent, the biggest advance for a most-active contract since May 10, to 262 yen a kilogram. Futures gained 7.5 percent this week, also the most since the seven-day period ended May 10.
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