Corn, wheat rebound from downturn but soybeans choppy
Monday, 30 March 2009
CHICAGO, Mar 29 (Internet): United States (US) corn and wheat futures firmed Thursday, rebounding slightly from sharp downturns earlier in the week ahead of the release of a key US Agriculture Department planting report, traders said.
The soybean market was choppy, fluctuating between positive and negative territory amid talk of the Chinese government releasing 1 million tonnes of soybeans it had been holding in reserve into the domestic market, traders said.
But volumes were light as most traders were reluctant to bet heavily ahead of the planting intentions report, which is scheduled to be released on Tuesday morning.
"Really what is being seen in corn and wheat more closely resembles treading water than it does anything else," said Gavin Maguire, analyst with brokerage EHedger in Chicago. "We are kind of biding our time ahead of the report. (We will) be heading mainly sideways until the numbers are out and we have had a chance to digest them."
The corn market's gains against soybeans on Thursday was reflective of expectations for rising acreage for the soybean crop this year.
"I think we are focused on the plantings report right now, more so for corn," said Rich Feltes senior vice president and director of research for MF Global. "I think the acreage report is far more important for the corn that it is for the beans."
At 11:10 am CDT (1610 GMT), the Chicago Board of Trade May corn futures contract was up 3-3/4 cents at $3.89-1/2 a bushel while May soybean futures were down 1 cent at $9.50 a bushel.
CBOT May wheat was up 1 cent $5.09 a bushel. Forecasts for more rain in the U.S. Plains were limiting the upside for wheat prices despite expectations of a 5.4 per cent downturn in world wheat production in the 2009/10 crop year.
Corn and wheat futures were also receiving support from outside markets such as crude oil, which rose to its highest level in about four months on Thursday due to expectations that economic stimulus packages might be working.
A U.S. stock market rally, fueled by rising consumer shares, also boosted grain markets.
"Outside markets right now are influencing the grains. There's nothing fundamental in terms of weather and the like that seems to be that important at the moment," said Akhilesh Kamkolkar, head of futures at Halifax Investment Services.
Traders said improved investor sentiment would underpin prices until the planting report comes out.
"People are probably looking to reduce exposure going into the report that will show whether the corn acreage is as low as some are expecting." said Tim Glass, global head of commodities trading at National Australia Bank.
Traders were also keeping a watch on a farmers' strike in Argentina, the world's No. 2 corn exporter and No. 3 for soybeans, that began on Saturday and is expected to run for seven days. (Additional reporting by Bruce Hextall in Sydney).
The soybean market was choppy, fluctuating between positive and negative territory amid talk of the Chinese government releasing 1 million tonnes of soybeans it had been holding in reserve into the domestic market, traders said.
But volumes were light as most traders were reluctant to bet heavily ahead of the planting intentions report, which is scheduled to be released on Tuesday morning.
"Really what is being seen in corn and wheat more closely resembles treading water than it does anything else," said Gavin Maguire, analyst with brokerage EHedger in Chicago. "We are kind of biding our time ahead of the report. (We will) be heading mainly sideways until the numbers are out and we have had a chance to digest them."
The corn market's gains against soybeans on Thursday was reflective of expectations for rising acreage for the soybean crop this year.
"I think we are focused on the plantings report right now, more so for corn," said Rich Feltes senior vice president and director of research for MF Global. "I think the acreage report is far more important for the corn that it is for the beans."
At 11:10 am CDT (1610 GMT), the Chicago Board of Trade May corn futures contract was up 3-3/4 cents at $3.89-1/2 a bushel while May soybean futures were down 1 cent at $9.50 a bushel.
CBOT May wheat was up 1 cent $5.09 a bushel. Forecasts for more rain in the U.S. Plains were limiting the upside for wheat prices despite expectations of a 5.4 per cent downturn in world wheat production in the 2009/10 crop year.
Corn and wheat futures were also receiving support from outside markets such as crude oil, which rose to its highest level in about four months on Thursday due to expectations that economic stimulus packages might be working.
A U.S. stock market rally, fueled by rising consumer shares, also boosted grain markets.
"Outside markets right now are influencing the grains. There's nothing fundamental in terms of weather and the like that seems to be that important at the moment," said Akhilesh Kamkolkar, head of futures at Halifax Investment Services.
Traders said improved investor sentiment would underpin prices until the planting report comes out.
"People are probably looking to reduce exposure going into the report that will show whether the corn acreage is as low as some are expecting." said Tim Glass, global head of commodities trading at National Australia Bank.
Traders were also keeping a watch on a farmers' strike in Argentina, the world's No. 2 corn exporter and No. 3 for soybeans, that began on Saturday and is expected to run for seven days. (Additional reporting by Bruce Hextall in Sydney).