CHICAGO, June 5 (Xinhua): Chicago agricultural commodities futures traded mixed yesterday, with corn dropping while wheat and soybean rising.
The most active corn contract for July delivery dropped 2 cents, or 0.44 per cent, to close at 4.5625 dollars per bushel. July wheat rose 2 cents, or 0.33 per cent, to close at 6.145 dollars per bushel. July soybeans gained 1.25 cents, or 0.08 per cent, to close at 14.825 dollars per bushel.
Corn continued to slide on record world crop projections; wheat enjoyed a modest gain on short covering; and soybean managed a slight rise for a lack of any vigor. Trade volume for all grains was thin.
U.S. Census Bureau on Wednesday placed the country's April soybean imports at 7.12 million bushels, a record for the month, and soybean exports at 43.65 million bushels; April corn exports at 222.2 million bushels; and April wheat exports at 105.7 million bushels, higher than trade expectations.
US weekly ethanol report was in line with trade expectations. US produced 938,000 barrels of ethanol per day last week, up 1 per cent from the previous week; and the amount of corn consumed was 100.7 million bushels, which is in line with US Department of Agriculture's annual consumption target of 5.050 billion bushels.
US corn, soybean and wheat prices are not competitive in the world markets at present. Argentina is offering the world's cheapest corn at a FOB of 5.15 dollars per bushel, 0.24 dollars lower than that of the American crop, and the cheapest soybean at a FOB of 14.44 dollars, 1.22 dollars lower. The FOB for Black Sea wheat is at 6.88 dollars, 1.62 dollars lower than US hard wheat. Even in crisis-obsessed Ukraine, new crop corn price is 0.28 dollars cheaper than that of the U.S. crop.
Furthermore, weather in US and other parts of the world is too good for any sustained advance of grain prices at present. Weather forecast for Central U.S. remain favorable with showers or storms to pull across the Plains and the Midwest every three to four days. Rain and temperatures are ideal for grain crops to grow into late June.
