corn futures brokers

corn futures climb

May 29th, 2013

Corn futures rose in Chicago as rains further delayed sowing in some U.S. states. Wheat slipped on prospects for improved crop conditions.

Parts of Iowa, Illinois, Missouri and South Dakota had as much as 6 inches (15 centimeters) of rain during the past three days, causing flooding and delaying planting, Commodity Weather Group LLC said yesterday. The U.S. is the world’s largest producer of the grain.

“Weather conditions are still penalizing for soybeans and corn,” Paris-based farm adviser Agritel wrote in a comment today. “On the flip side, the rains are beneficial for wheat crops, which explains the price drop for this product, even more so as planting conditions in Australia look favorable.”

Corn futures for delivery in December, after the harvest, added 0.4 percent to $5.53 a bushel at 8:33 a.m. on the Chicago Board of Trade. Prices slid 15 percent this month amid expectations U.S. output will rise even with planting delays.

About 86 percent of the corn crop was sown as of May 26, the U.S. Department of Agriculture said yesterday. While that’s up from 71 percent a week earlier, it trails the five-year average of 90 percent and the pace of 99 percent a year earlier, the data show.

The USDA figures “showed farmers made good progress last week,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia (CBA), wrote in a report today.

Wheat Prices

Wheat futures for delivery in July dropped 0.4 percent to $6.91 a bushel. Prices are down 5.5 percent this month. Milling wheat for delivery in November traded on NYSE Liffe in Paris was unchanged at 205 euros ($265) a metric ton.

Showers in the U.S. Plains will favor wheat development, while expected rain this week in western Australia and central and eastern areas will recharge soil moisture for planting wheat and developing crops, DTN wrote in a forecast yesterday.

Ukraine may reap 19.3 million tons of winter wheat, local news agency Unian reported this week, citing the national weather center. Last year’s total Ukrainian wheat crop including spring-planted grain was 15.8 million tons, according to the USDA.

“Ukraine is on course for a wheat crop in the region of 19 million to 21 million tons and aggressive FSU new-crop offers continue to weigh on European offers,” Jaime Nolan-Miralles, a commodity risk manager at INTL FCStone Inc. in Dublin, wrote in a note to clients, referring to the former Soviet Union.

Soybeans for delivery in July fell 0.5 percent to $15.0175 a bushel in Chicago. The oilseed is set to climb 7.3 percent this month, the first gain since January and the biggest since July.

- Phoebe Sedgman in Melbourne and Rudy Ruitenberg in Paris at Bloomberg.