Monday, 13 July 2015 16:55
PARIS/SINGAPORE: US corn rose for a fourth consecutive session on Monday to hold near a one-year high, as a lower-than-expected estimate of US stocks and concern over soggy conditions for Midwest crops raised doubts over supply prospects for the coming season.
Soybeans, which had also gained ground on Friday after the US Department of Agriculture’s (USDA) crop estimates, edged lower as a firm dollar and falling crude oil put a lid on US grain markets.
The dollar rose as a euro zone deal for a new Greek bailout turned attention back towards a possible US interest rate rise, while oil prices were sapped by expectations that an agreement was imminent in talks over Iran’s nuclear programme.
Wheat ticked lower to hover close to a two-week low as large global stocks and uncompetitive US export prices continued to weigh on sentiment.
“We saw a bullish USDA report which is supporting corn prices,” said Kaname Gokon, general manager of research at brokerage Okato Shoji in Tokyo.
“Stocks are expected to be lower and wet weather is hurting the crop.”
Chicago Board Of Trade September corn rose 0.4 percent to $ 4.36-1/4 a bushel by 1032 GMT. The contract had gained 1.4 percent in the previous session when it hit a one-year high of $ 4.39-1/4 a bushel.
The USDA cut old-crop corn ending stocks to 1.779 billion bushels from 1.876 billion due to increased demand from the export and feed sector.
The agency kept its US corn and soy yield forecasts unchanged from June, but many in the market expect it to revise down yields later in view of heavy rain that has hampered planting and early growth of crops.
Large speculators switched to a net long position in CBOT corn futures in the week to July 7, regulatory data released on Friday showed.
August soybeans were down 0.5 percent at $ 10.26-3/4 a bushel and September wheat eased 0.2 percent to $ 5.74-3/4 a bushel.
The USDA pegged old-crop US soybean ending stocks at 255 million bushels, down from 330 million bushels a month ago, and analysts expect it will trim its yield outlook going forward.
“The 2015/16 US soybean yields were left unchanged and at 46 bushels per acre are well above our forecast of 43.5 bu/acre, requiring very good weather from here on to be achieved,” Rabobank analysts said in a note.
The USDA raised its forecast of 2014/15 global wheat ending stocks by nearly 12 million tonnes, to 212.06 million, to reflect revisions to Chinese wheat demand, contributing to record projected stocks at the end of 2015/16.
The market played down the steep Chinese revisions, but harvest progress in the northern hemisphere and slow US exports continued to cap prices, despite background weather worries.
