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Corn Futures
Corn Drops as U.S. Supply Outlook Improves Amid Weakening Demand
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June 18th, 2013
Corn futures declined for the first time in three days on a forecast for warmer weather in the Midwest, aiding crop growth amid signs demand has weakened for supplies from the U.S., the largest shipper. Soybeans and wheat fell.
The contract for delivery in December, after the U.S. harvest, lost as much as 0.6 percent to $5.4725 a bushel on the Chicago Board of Trade and was at $5.475 by 10:55 a.m. in Singapore. Futures gained 2.2 percent yesterday on concern that cool and wet weather in parts of the U.S. may slow crop development.
The Midwest, the largest growing region in the U.S., will turn drier and warmer through the weekend, favoring development of late planted crops, DTN said in a report yesterday. About 560.86 million bushels were inspected before shipment at U.S. ports as of June 13, down 56 percent from a year earlier that ended Aug. 31, the U.S. Department of Agriculture said June 17.
“The grain market is overvalued and out of line with the fundamentals,” Makiko Tsugata, an analyst at Market Risk Advisory Co. in Tokyo, wrote in an e-mail today, referring to declining U.S. exports. “This summer’s weather in the corn belt area is expected to be good for growth.”
Soybeans futures for delivery in November, after the U.S. harvest, slipped 0.2 percent to $12.8675 a bushel in Chicago, while wheat for September delivery lost 0.6 percent to $6.905 a bushel.
- Luzi Ann Javier in Singapore at Bloomberg.
March 16th, 2011
Corn futures fell to a two-month low on concern that commodity demand will decline as Japan’s nuclear crisis escalates.
The Asian nation is struggling to control radiation leaking from a power plant damaged by the magnitude-9 earthquake and tsunami that struck on March 11, killing thousands. Japan is the world’s biggest corn buyer. On Feb. 22, the price in Chicago reached a 31-month high.
“People fear the worst possible outcome in Japan and are liquidating long positions,” said Gregg Hunt, a market analyst at Archer Financial Services Inc. in Chicago. “The situation has the potential to reduce demand” for supplies from the U.S., he said.
Corn futures for May delivery fell 19.5 cents, or 3.1 percent, to close at $6.165 a bushel at 1:15 p.m. on the Chicago Board of Trade. Earlier, the price touched $6.08, the lowest for a most-active contract since Jan. 12. Yesterday, the grain tumbled 4.5 percent, the most in four months.
Before today, the price jumped 75 percent in the past 12 months. The U.S. is the world’s leading corn exporter.
Corn is the biggest U.S. crop, valued at $66.7 billion in 2010, government figures show.
- Jeff Wilson in Chicago at Bloomberg.
