SINGAPORE, May 22: US corn edged lower on Wednesday, falling for a third straight session as easing supply concerns prompted US farmers to sell old-crop stocks, while bargain buying pushed wheat off a seven-week low.
Soybean futures slid, ending a four-session rising streak and falling from a three-month high on pressure from declining prices in the cash market.
A jump in corn planting progress to 71 percent last week from 28 percent a week earlier spurred U.S. Farmers to release old-crop stocks held back as a cold and wet spring across the U.S. Midwest delayed seeding to a record low pace.
‘Last week’s planting has pretty much compensated for the slow progress at the beginning of the season,’ said Vyanne Lai, agribusiness economist at National Australia Bank. ‘The crop is shaping up to reach record levels.’
The Chicago Board of Trade July corn slid 0.3 percent to $6.38-1/4 a bushel by 0242 GMT, while the new-crop December contract was up 0.3 percent at $5.21-3/4 a bushel.
July soybeans eased 1 cent, or 0.1 percent, to $14.77-1/4 a bushel and July wheat was up 0.2 percent at $6.82 a bushel.
Occasional rainfall over the next week will slow seedings of the U.S. Corn crop from the record pace but not enough to halt planting, an agricultural meteorologist said.
Warmer temperatures next week will help crop growth and development, said Don Keeney, a meteorologist for MDA Weather Services.
Soybean spot basis bids fell sharply on Tuesday around the U.S. Midwest, to their lowest since last year’s harvest, as both farmers and commercial elevators stepped up old-crop sales.
Soybean buying by China, the world’s largest importer of the oilseed, is likely to rebound from May as it replenishes run-down inventories, Hamburg-based oilseeds analysts Oil World said on Tuesday. Such a move would support prices.
Commodity funds sold a net 9,000 CBOT corn contracts on Tuesday, trade sources said. They bought 4,000 soybeans and sold 1,000 wheat.
The wheat market could face pressure from weaker corn prices and improved weather in Russia and Australia.
Russia’s Grain Union has raised the top end of its 2013 harvest forecast range due to the good condition of winter grains, the head of the body said on Tuesday, indicating limited crop risks due to dry weather this month. (AGENCIES)
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