Soft Commodities Price Watch: Corn Hits Two-Week Low
iNVEZZ.com Tuesday, July 23rd: Grain futures traded lower today, with corn prices tumbling more than one percent to a two-week low as investors focused on U.S. weather forecasts and crop prospects.
The U.S. Department of Agriculture (USDA) said in a report yesterday that 63 percent of the U.S. corn crop was in ‘good’ to ‘excellent’ condition as of July 21, below the 66 percent recorded in the preceding week. The USDA has also estimated that nearly 11 percent of the corn crop was in ‘poor’ to ‘very poor’ condition, a deterioration from nine percent a week earlier. Easing the concerns over crop damage,
Commodity Weather Group forecast yesterday that the U.S. Midwest is expected to remain cool in the next two weeks, with temperatures below the long-term average.
Corn for December delivery on the Chicago Board of Trade (CBOT) today tumbled 1.5 percent to $4.9075 a bushel, the lowest level since July 8. The September contract also declined, hitting a daily low of $5.3413 a bushel, the weakest level since July 18. Investment bank Goldman Sachs said yesterday it was maintaining its 12-month forecast for the corn price at $4.75 a bushel.
Elsewhere on the CBOT, soybeans futures for August delivery traded at $15.1963 a bushel, little changed on the day and well above Goldman’s 12-month price estimate of $11 a bushel.
The USDA reported yesterday that approximately 46 percent of the U.S. soy crop bloomed as of last week, up from 26 percent in the preceding week. The Agriculture Department also said that nearly 64 percent of the soy crop was in ‘good’ to ‘excellent’ condition as of last week, down from 65 percent a week earlier.
Among other grains, wheat for September delivery in Chicago traded 0.8 percent lower at $6.5363 a bushel. Earlier in the session, the contract fell by as much as one percent to hit a daily low of $6.5263 a bushel, the lowest level since July 2. Goldman Sachs expects the wheat price to average $6.50 a bushel over the next 12 months, the investment bank said yesterday.
The USDA’s latest crop update showed that nearly 75 percent of the winter-wheat was harvested as of last week, up from 67 percent a week earlier.
**Coffee and Sugar Holding Steady**
Coffee and sugar prices were steady today after updated weather forecasts fuelled concerns over potential crop damage in top grower Brazil.
On the ICE Futures U.S. Exchange, sugar futures for October delivery traded at $0.1643 a pound, up 0.25 percent on the day. Meanwhile, refined, or white, sugar for delivery in October added 0.5 percent to $474.50 a tonne on NYSE Liffe.
Arabica coffee for September delivery was down 0.2 percent at $1.2485 a pound, after the contract rose by as much as 1.1 percent earlier in the day to hit a session high of $1.2648 a pound. Robusta coffee for the same delivery month rose 0.5 percent to $1,954 a metric tonne on NYSE Liffe in London.
!m[Sugar and Coffee Steady, while Rubber Climbs to Seven-Week High](/uploads/story/4257/thumbs/pic1_inline.jpg)
Elsewhere, cocoa for delivery in September gained 0.8 percent to £1,604 a tonne in London and 0.7 percent to $2,365 a tonne in New York.
**Rubber at Seven-Week High on China Demand Speculation**
Rubber rose to a seven-week high today after China’s Premier Li Keqiang said the nation’s economy will grow by at least seven percent, boosting speculation that demand for the commodity used in tires will gain traction from its biggest consumer.
Rubber for delivery in December on the Tokyo Commodity Exchange (TOCOM) settled at 256.3 yen a kilogram today, the highest since June 5.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.