US MIDDAY: corn retreats

July 12, 2013


US new-crop corn futures retreated on Thursday as improving crop weather and position-squaring ahead of a monthly US government crop report offset strong export data, traders said. Soyabean futures rose on worries about prospects for late-planted crops, and wheat firmed on short-covering.

At the Chicago Board of Trade as of 10:05 am CDT (1505 GMT), most-active December corn was down 4-1/2 cents at $5.17 per bushel. Tight old-crop supply kept July futures higher on the eve of their expiration, although July soyabeans stayed below a contract high of $16.30 a bushel set on Tuesday. New-crop November soyabeans were up 6-1/4 cents at $12.91 per bushel, and September wheat was up 3 cents at $6.82 a bushel.

CBOT December corn, representing the 2013 harvest, retreated from a nearly two-week high as some forecasters scaled back outlooks for stressful heat in the western Corn Belt later this month. Crop conditions have been good so far this summer, with more than two-thirds of the corn crop rated in good to excellent condition, according to the latest weekly progress report from the US Department of Agriculture.

Expectations for a record-large US corn harvest this fall hung over the market, even as traders expected the USDA to reduce its estimates of US old-crop and new-crop corn stockpiles in a monthly report. The USDA’s July supply/demand report is due at 11 am CDT (1600 GMT). “The last several reports out of the USDA have not been friendly for the corn market, so I imagine it’s a little defensive in anticipation,” said Bill Gentry, a broker at Risk Management Commodities in Lafayette, Indiana. Courtesy Reuters

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