Tuesday, 07 July 2015 16:53
SINGAPORE/PARIS: Chicago corn slid for a second session on Tuesday, while soybeans fell to a one-week low under pressure from the strong dollar and as dry weather in parts of the US grain belt after weeks of heavy rains improved crop prospects.
Wheat lost ground, tracking weakness in corn, although losses were limited by unfavourable weather threatening yields in key exporters Europe and Canada.
US corn crop ratings moved higher for the first time in three weeks with the break in recent rains, while soybeans were steady compared with a week ago, state crop reports showed.
“There have been concerns over excessive rains, everyone was wondering what will happen to the crop,” said Phin Ziebell, agribusiness economist at National Australia Bank.
“Dry weather should improve things further if it holds up.”
Chicago Board Of Trade September corn fell 0.7 percent to $ 4.23-1/2 a bushel by 1045 GMT, having closed down 0.5 percent in the previous session.
August soybeans slipped 0.6 percent to $ 10.16-1/2 a bushel, after hitting $ 10.13-1/2, the lowest since June 30, and September wheat fell 1.1 percent to $ 5.89 a bushel.
The dollar rose to a one-month high, mainly buoyed by the plunge of the euro amid uncertainty over Greece’s position in the common currency. A high dollar hampers US grains’ competitiveness on world markets.
Corn condition in the top 18 states was 69 percent good to excellent, up 1 point from a week earlier, and ahead of market forecasts.
The soybean crop was rated 63 percent good to excellent, slightly below a five-year average of 65 percent. Analysts had expected the USDA to peg soybeans at 61 good to excellent.
Nationwide, 96 percent of the soybean crop was planted as of Sunday, lagging the normal pace because of a wet June. In most years, soybean planting is completed by July.
Winter wheat ratings by Sunday were 40 percent good to excellent, down 1 point from the week before and below market expectations. Concerns about moisture-related diseases continue.
Large speculators trimmed their net short position in CBOT corn futures in the week to June. 30, data showed.
The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and raised their net long position in soybeans.
