Soft Commodities Price Watch: Corn Sinks to 33-Month Low on Crop Outlook
iNVEZZ.com Thursday, July 25th: Grain futures were broadly lower today, with soybeans and corn tumbling to multi-week lows as rain and cool weather in the U.S. prompted optimism that production in the world’s biggest grower will surge record levels.
According to MDA Weather Services, an expected lack of heat across the U.S. Midwest growing region in the next two months will avoid “significant stress” for corn and soybeans. Scattered thunderstorms are forecast in the Midwest and no hot weather is expected during the next 10 days, favouring corn and soybeans, DTN weather services said in a report yesterday, adding to an accelerated production outlook for the soft commodities.
The soybean price for November delivery has fallen one percent to $12.4425 a bushel on the Chicago Board of Trade (CBOT) today, while earlier during the trading session it touched $12.425, the lowest for a most-active contract since July 8. Meanwhile, corn hit a 33-month low, with the December contract falling 0.8 percent to $4.765 a bushel, the lowest since October 5, 2010.
Bloomberg quoted UK-based grain merchant Gleadell Agriculture as commenting on the corn price slump today: “Favourable weather conditions for the U.S. corn belt continue to drive the market, with corn still lingering at a long-term low.”
Elsewhere on the CBOT, wheat for delivery in September was also down today, declining 0.27 percent to $6.5150 a bushel, while milling wheat for November delivery on NYSE Liffe in Paris fell 0.5 percent to €189.25 a tonne, the lowest intraday price for a most-active contract since February 2012.
**Coffee Rebounds on Limited Damage from Frost in Brazil**
Arabica coffee has rebounded in New York after falling the most in five weeks yesterday as most growing areas in top grower Brazil escaped damage from frost. According to data from forecaster Somar
Meteorologia and the government, while frost formed in some coffee growing areas of Parana, the Brazilian state’s production accounts for only 3.5 percent of the country’s total thus not having a major
impact on Brazil’s supply prospects.
!m[Soybeans Also Down as U.S. Weather Prompts Record Output Prospects](/uploads/story/4348/thumbs/pic1_inline.jpg)
After falling 3.8 percent yesterday, Arabica coffee for delivery in September gained as much as 0.7 percent to $1.2215 a pound on ICE Futures U.S. in New York today. Robusta coffee for September delivery fell 0.5 percent to $1,887 a metric tonne on NYSE Liffe in London.
Among other agricultural commodities, raw sugar for delivery in October gained 1.1 percent to $0.1632 a pound on ICE. White sugar for October delivery was up 0.4 percent to $476.70 a tonne on NYSE Liffe. Cocoa for September delivery was little changed at $2,362 a tonne in New York and 0.7 percent higher at £1,606 a tonne in London.