Friday, July 1

Corn dips but set for second weekly gain on US weather concerns


Article content

SINGAPORE — Chicago corn futures edged lower on Friday after making sharp gains in the previous session, but the market was poised for a second consecutive weekly rise on concerns over hot weather in parts of the US Midwest.

Wheat and soybeans also lost ground.

FUNDAMENTALS

* The most-active corn contract on the Chicago Board of Trade (CBOT) has risen almost 2% so far this week. The market was trading down 0.2% at $7.87 a bushel, as of 0110 GMT.

* Wheat gave up 0.5% to $10.73 a bushel and soybeans fell 0.2% to $17.06-1/4 a bushel.

Article content

* There is no immediate threat to the US corn crop, which was planted in wet weather, but prolonged dryness and record temperatures could curb yields.

* Temperatures across the Midwestern United States this week have soared well above average, in some cases to the highest since 2012, when severe drought hit the Corn Belt, wrecking crop yields and boosting prices.

* “US corn is generally in good condition at this early stage,” Karen Braun, a market analyst for Reuters, wrote in a column. “Although crops will be stressed in blazing heat, permanent damage is avoidable if weather improves next month.”

* In July, US corn typically undergoes pollination, a critical stage for determining yield potential, which can be limited if it remains hot and dry.

Article content

* Russia said on Thursday it was facilitating the export of grain and oilseeds from Ukraine through Russian-held transit points on the Azov Sea, without explaining who was providing the foodstuffs for export.

* Ukraine, like Russia one of the world’s biggest exporters of grains and oilseeds, has accused Russia of stealing grain from territories in Ukraine that its forces have seized.

* Weather and higher production costs mean Romania’s grain crops will be somewhat lower than last year’s bumper harvest, but still ensure enough surplus for exports, Agriculture Minister Adrian Chesnoiu said.

* Romania has been among the largest grain sellers in the European Union and is an active exporter to the Middle East, with Egypt the main buyer.

* Commodity funds were net buyers of CBOT corn, wheat, soybean and soymeal futures contracts on Thursday and net sellers of soyoil futures, traders said.

MARKET NEWS

* World stocks plummeted again on Thursday and government bonds hovered near multi-year highs after a series of rate rises from global central banks rekindled fears that aggressive policy tightening could drag economies into recession.

DATA/EVENTS (GMT) 0900 EU HICP Final MM, YY May 1315 US Industrial Production MM May (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)



financialpost.com

Leave a Reply

Your email address will not be published.