Soft Commodities Price Watch: Corn Drops to 33-Month Low on Cooler U.S. Weather

By: Deyana Ivanova
Deyana Ivanova
Deyana has a media background as a Journalism graduate. With a general interest in the financial markets and global… read more.
on Jul 29, 2013 Monday, July 29th: Corn futures extended declines today, reaching a 33-month low on speculation U.S. crops will escape damage from hot weather in the next few weeks as temperatures remain cooler than normal.

According to the U.S. National Weather Service, temperatures in central Iowa and Illinois, the top two corn-growing states, will remain below 80 degrees Fahrenheit (27 degrees Celsius) through at least tomorrow. In a separate forecast, AccuWeather said today that temperatures in the Midwest and northern and central Great Plains may see “significant, persistent cool weather during August.”

Corn for December delivery on the Chicago Board of Trade (CBOT) was 0.26 percent higher at $4.7725 a bushel as of 14:52 BST today. Earlier during the trading session, however, the contract touched $4.7200 a bushel, its lowest price since October 2010.
While below-normal temperatures in the next six to 10 days will favour corn pollination, extended cool weather might delay maturity and leave crops vulnerable to an early freeze, according to DTN. The forecaster said today that some dry areas of the Midwest might see rain in the next six to 10 days, benefiting developing soybeans.

The soybean price for November delivery in Chicago has fallen 1.34 percent to $12.1200 a bushel by 14:57 BST today. Elsewhere on the CBOT, the wheat price for September delivery gained 0.08 percent to $6.5075 a bushel. Meanwhile, milling wheat for November delivery on NYSE Liffe in Paris dropped 0.4 percent to €187 a metric tonne, after touching €185.75 — the lowest since December 2011.

**White Sugar Advances as Harvests from Thailand to India End**
White sugar climbed for a third day today, sending the premium over raw sugar to a four-week high, with the end of harvests in Thailand to India set to curb supplies.
!m[White Sugar Climbs, while Cocoa and Coffee Slide](/uploads/story/4418/thumbs/pic1_inline.jpg)
White sugar for October delivery has gained 0.6 percent to $482.50 a tonne on NYSE Liffe in London today, while raw sugar for October delivery has risen 0.2 percent to $0.1650 a pound on ICE Futures U.S. in New York. The premium for white, or refined, sugar over raw sugar climbed to $119.42 a metric tonne, the highest since June 27.

Among other soft commodities, ICE cocoa has fallen 1.76 percent to $2,2920 a tonne by 15:18 BST today. In London, the cocoa contract dropped 0.5 percent to £1,560 a tonne. Meanwhile, Arabica coffee was 0.7 percent down at $1.2140 a pound in New York. The Robusta coffee price fell 0.3 percent to $1,915 a tonne on NYSE Liffe.
Elsewhere, cotton for December delivery in New York gained 0.3 percent to $0.8535 a pound, boosted by concerns over the crop in China, where poor weather is adding to production concerns raised by a drop of some five percent in plantings.

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