SINGAPORE, Aug 2: U.S. Corn ticked higher on Friday, supported by bargain hunting by end-users, but prices are still on track to fall for a third week as forecasts of favourable weather boost expectations for record output.
Wheat rose as strong demand for U.S. Supplies underpinned the market while soybeans edged up, recovering from last session’s deep losses.
The outlook for rain and cool temperatures across the U.S.
grain belt is weighing on corn prices as the crop undergoes a critical phase of development.
Rain was expected in Nebraska and western Iowa, the driest
parts of the U.S. Corn Belt, during the next few days, an agricultural meteorologist said.
The storms could bring 0.5 to 1.5 inches across much of eastern Nebraska and southwestern Iowa, with totals reaching as
high as 3 inches in some localized areas, said Andy Karst with
World Weather Inc.
Analysts said the corn market, which has fallen more than 8
percent in three weeks, may have bottomed out.
‘Corn is coming down as the weather looks very good,’ said
Ole Houe, an analyst at Sydney-based brokerage IKON Commodities.
‘But it wouldn’t have much more downside, maybe 20 to 30 cents more. It is benign right now but there is still some time
to go before the harvest.’
Chicago Board of Trade new-crop December corn rose 0.2 percent to $4.68 a bushel by 0341 GMT, not far from Thursday’s
near three-year low of $4.64 a bushel. November soybeans added 0.4 percent to $11.97-1/2 a bushel.
For the week, December corn is down 1.7 percent, the market’s third week of losses while November soybeans have lost
2.5 percent, falling for a second week in row.
Commodity brokerage INTL FCStone estimated a record U.S. 2013 corn production at 13.993 billion bushels, with an average
yield of 157.0 bushels per acre.
The figures compare with the U.S. Department of Agriculture’s current U.S. Corn production forecast of 13.950 billion bushels, with an average yield of 156.5 bpa.
Commodity funds sold a net 15,000 CBOT corn contracts on Thursday, trade sources said. They sold 8,000 soybean contracts
and sold 3,000 wheat.
The wheat market, which slid in line with losses in corn futures on Thursday, is finding some support from strong global
demand for U.S. Supplies.
CBOT spot-month wheat gained 0.3 percent on Friday, taking its gains for the week to 1.5 percent.
Japan bought nearly 90,000 tonnes of U.S. Western white wheat in a tender on Thursday, marking the first purchase of the
variety by its top buyer after the discovery of a genetically modified version of the grain in Oregon.
Brazilian importers have purchased around 400,000 tonnes of
U.S. Hard red winter wheat in recent deals and are in the market
for more.
Still, the International Grains Council raised its forecast
for 2013/14 global wheat production by 4 million tonnes to 687
million, reflecting upward revisions to crop outlooks for the United States, European Union and India.
Prices at 0341 GMT
Contract Last Change Pct chg MA 30 RSI
CBOT wheat 659.75 1.75 +0.27% 866.40 49
CBOT corn 468.00 1.00 +0.21% 757.51 26
CBOT soy 1197.50 5.00 +0.42% 1570.46 34
CBOT rice $15.89 $0.03 +0.19% $15.50 62
WTI crude $108.63 $0.74 +0.69% $89.60 70
Currencies
Euro/dlr $1.321 $0.092
USD/AUD 0.891 -0.164
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(AGENCIES)
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