Corn, wheat decline as warm weather accelerates US planting
Wednesday, 3 June 2009
SINGAPORE, June 2 (Bloomberg): Corn and wheat futures in Chicago fell from their highest in about eight-months as warmer, drier weather in the US helped accelerate planting, boosting yield potential. Soybeans also declined.
Planting of the US corn crop, the world's biggest, was about 93 per cent finished as of May 31, up from 82 per cent a week earlier, the Department of Agriculture said yesterday. About 89 per cent of the spring-wheat crop was seeded, compared with 79 per cent the previous week. Soybean planting was 66 per cent completed, up from 48 per cent a week earlier.
Progress with seeding boosted "expectations on what the yields are going to be," Justin Smirk, senior economist at Westpac Banking Corp., said by phone from Sydney today. "There's a bit of downward pressure on prices."
Corn for July delivery fell as much as 1.1 per cent to $4.41 a bushel in after-hours trading on the Chicago Board of Trade and was at $4.4225 a bushel at 2:44 p.m. Singapore time. The contract touched $4.46 yesterday, the highest since Oct. 6.
About 70 per cent of the corn crop was rated good or excellent as of May 31, compared with 63 per cent a year earlier, when flooding damaged plants in parts of the western Midwest. An estimated 67 per cent of the spring-wheat crop had emerged from the ground as of May 31, up from 45 per cent a week earlier, according to the USDA.
Wheat for July delivery declined as much as 1.3 per cent to $6.6575 a bushel in Chicago and traded at $6.6675 a bushel at 2:44 p.m. Singapore time. The contract surged 7.4 per cent to $6.77 yesterday, the highest since Oct. 2.
Soybeans for July delivery dropped as much as 0.5 per cent to $12.125 a bushel in Chicago and last traded at $12.1375. Futures climbed as much as 3.6 per cent to $12.27 yesterday, the highest since Sept. 5.
Still, a weakening dollar and signs of global economic recovery may boost demand for grains and oilseeds and support prices, Smirk said.
Planting of the US corn crop, the world's biggest, was about 93 per cent finished as of May 31, up from 82 per cent a week earlier, the Department of Agriculture said yesterday. About 89 per cent of the spring-wheat crop was seeded, compared with 79 per cent the previous week. Soybean planting was 66 per cent completed, up from 48 per cent a week earlier.
Progress with seeding boosted "expectations on what the yields are going to be," Justin Smirk, senior economist at Westpac Banking Corp., said by phone from Sydney today. "There's a bit of downward pressure on prices."
Corn for July delivery fell as much as 1.1 per cent to $4.41 a bushel in after-hours trading on the Chicago Board of Trade and was at $4.4225 a bushel at 2:44 p.m. Singapore time. The contract touched $4.46 yesterday, the highest since Oct. 6.
About 70 per cent of the corn crop was rated good or excellent as of May 31, compared with 63 per cent a year earlier, when flooding damaged plants in parts of the western Midwest. An estimated 67 per cent of the spring-wheat crop had emerged from the ground as of May 31, up from 45 per cent a week earlier, according to the USDA.
Wheat for July delivery declined as much as 1.3 per cent to $6.6575 a bushel in Chicago and traded at $6.6675 a bushel at 2:44 p.m. Singapore time. The contract surged 7.4 per cent to $6.77 yesterday, the highest since Oct. 2.
Soybeans for July delivery dropped as much as 0.5 per cent to $12.125 a bushel in Chicago and last traded at $12.1375. Futures climbed as much as 3.6 per cent to $12.27 yesterday, the highest since Sept. 5.
Still, a weakening dollar and signs of global economic recovery may boost demand for grains and oilseeds and support prices, Smirk said.