U.S. Corn Trades Higher; Soybean Futures Rise on Weather Concerns

August 15th, 2013

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Category: Grains, Oilseeds

Corn showing gains(The Wall Street Journal) – U.S. corn futures ended the trading session narrowly higher, as market participants continued to reposition following a monthly supply-and-demand report released by the U.S. Department of Agriculture Monday.

The agency surprised many industry watchers by downwardly revising estimates for the year’s corn crop yield and total production. Sentiment that the USDA’s production estimates would improve in coming reports erased some of the bullishness from Monday’s report, taking the spot contract to a nearly three-year low. Wednesday, traders continued consolidating their positions to reflect the potential for a smaller-than-expected harvest, buying discounted corn futures.

Chicago Board of Trade Chicago Board of Trade September corn was up 9 1/2 cents, or 2.1%, at $4.64 3/4 a bushel, after settling at a three-month low the day before.

Soybean futures also ended the trading day mostly higher amid continued worries about unfavorable weather forecasts and a reduced USDA forecast for output this year. Traders are concerned about dry weather expected in the Midwest over the next 10 days, just as soybean crops are going through key stages of growth including setting pods and filling them out with beans.

August soybeans expired Wednesday. September soybeans were up 11 3/4 cents, or 0.9%, at $12.69 1/2 a bushel.

An export sale to China also supported soybean futures. The USDA said, on Wednesday morning, private exporters reported selling 110,000 metric tons of soybeans to China for delivery during the next marketing year, which starts Sept. 1.

Wheat futures were pulled lower by corn prices, which hit a fresh three-year low for the spot contract on Tuesday. Traders said they continue to see the spread between the price of the two crops, which are substitutes in animal feed, as too wide.

CBOT September wheat was up 2 1/2 cents, or 0.4%, at $6.30 3/4 a bushel.

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