U.S. corn at 1-month low, soy firms after 3-day decline

July 28th, 2015

By:

Category: Grains, Oilseeds

Corn_Chart450x299(Reuters) – Chicago corn futures slid for a third consecutive session on Tuesday to a one-month low with pressure from ideal weather across the U.S. Midwest that is boosting crop development.

Soybeans rose after dropping nearly 6 percent over the last three sessions, while wheat firmed following a drop to one-month low on Monday.

Chicago Board of Trade front-month corn slid as much as 0.4 percent to $3.71-1/2 a bushel by 0252 GMT, weakest since June 25. August soybeans gained 0.9 percent to $9.70 a bushel, September wheat added 0.1 percent to $5.02-3/4.

“The Brazilian corn crop has been pretty good and now U.S. weather conditions are improving,” said Phin Ziebell, agribusiness economist at National Australia Bank. “Things are looking favourable for bumper global supplies.”

It is back to perfect weather for U.S. corn and soybeans as forecasts are calling for scattered showers for the grain belt over the next 10 days. Excessive rain had raised concerns about crop development, with corn rallying 18 percent in June.

The condition of U.S. corn improved slightly last week with 70 percent of the crop rated good to excellent as compared with 69 percent the week before, although it was still well below the 75 percent seen a year ago, the U.S. Department of Agriculture (USDA) said after the market closed on Monday.

For soybeans, the USDA said 62 percent of the crop was in good to excellent condition, same as last week but below the previous year’s 71 percent.

Weekend rains in some areas west of the Mississippi River relieved parched growing areas, while forecasts for drier conditions and cooler-than-usual temperatures in the East were expected to help shepherd crops through development during the next week to 10 days.

Corn and soybean spot basis bids around the U.S. Midwest were steady to higher on Monday as futures prices plunged and farmers held back from the market, grain dealers said.

Farmers remained on the sidelines during the futures sell-off, delaying sales of existing supplies and what they intended to harvest this autumn in the hope that prices rebound.

The wheat market is facing headwinds on a rapidly progressing U.S. harvest and a lack of demand.

The USDA said 85 percent of the winter wheat crop has been harvested, up from 75 percent a week ago and higher than an 80 percent average of the last five years.

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