Corn declines for 2nd day after US inventory estimate
Tuesday, 13 July 2010
SINGAPORE, July 12 (Bloomberg): Corn futures fell for a second day after the US Department of Agriculture forecast that the nation's stockpiles will be bigger than analysts expected.
Corn for December delivery fell 0.6 per cent to $3.93 a bushel on the Chicago Board of Trade at 2:27 pm in Singapore after trading between $3.925 and $3.975. Futures advanced 4.5 per cent in the two days before the USDA issued the latest supply estimates on July 9.
Corn reserves in the US, the world's largest grower and exporter, will fall 7.1 per cent to 1.373 billion bushels (34.6 million metric tonnes) by August next year, the USDA said in the report. That compares with the 1.292 billion bushel average estimate of 23 analysts surveyed by Bloomberg News.
The USDA estimates were "not as bullish as expected," Commonwealth Bank of Australia said in a report published Monday.
The US agency also raised its estimate for US soybean production to 3.345 billion bushels, from 3.31 billion bushels in June, as the area harvested was forecast to expand to a record 78 million acres (31.6 million hectares).
Soybeans for November delivery lost 0.7 per cent to $9.465 a bushel, reversing a 0.3 per cent gain earlier.
September-delivery wheat was 0.2 per cent weaker at $5.37 a bushel, after swinging between gains and losses.
Wheat futures earlier gained as much as 0.7 per cent as dry weather persisted in Russia and Kazakhstan, raising concern that global supply may be smaller than estimated by the USDA.
The USDA cut on July 9 its estimate for global stockpiles of wheat at the end of the 2010-2011 marketing year by 6.9 million tonnes to 187 million tonnes from a month earlier. The agency pared output estimates for some exporters including Russia and Kazakhstan on concern dry weather will curb yields.
Corn for December delivery fell 0.6 per cent to $3.93 a bushel on the Chicago Board of Trade at 2:27 pm in Singapore after trading between $3.925 and $3.975. Futures advanced 4.5 per cent in the two days before the USDA issued the latest supply estimates on July 9.
Corn reserves in the US, the world's largest grower and exporter, will fall 7.1 per cent to 1.373 billion bushels (34.6 million metric tonnes) by August next year, the USDA said in the report. That compares with the 1.292 billion bushel average estimate of 23 analysts surveyed by Bloomberg News.
The USDA estimates were "not as bullish as expected," Commonwealth Bank of Australia said in a report published Monday.
The US agency also raised its estimate for US soybean production to 3.345 billion bushels, from 3.31 billion bushels in June, as the area harvested was forecast to expand to a record 78 million acres (31.6 million hectares).
Soybeans for November delivery lost 0.7 per cent to $9.465 a bushel, reversing a 0.3 per cent gain earlier.
September-delivery wheat was 0.2 per cent weaker at $5.37 a bushel, after swinging between gains and losses.
Wheat futures earlier gained as much as 0.7 per cent as dry weather persisted in Russia and Kazakhstan, raising concern that global supply may be smaller than estimated by the USDA.
The USDA cut on July 9 its estimate for global stockpiles of wheat at the end of the 2010-2011 marketing year by 6.9 million tonnes to 187 million tonnes from a month earlier. The agency pared output estimates for some exporters including Russia and Kazakhstan on concern dry weather will curb yields.