US MIDDAY: Corn dips

July 30, 2013

US corn prices dipped to the lowest since October 2010 on Monday as forecasters predicted the crop in the US Midwest would go through a key development phase in near-perfect weather conditions, traders said. Soyabeans were mixed, with the front-month contract bouncing on short-covering as it nears expiration. But deferred contracts were weak, with new-crop November dropping 1.3 percent as the weather bolstered expectations of a bumper harvest.

“The weather outlook is unchanged from last week in that scattered showers and cooler temperatures are beneficial for most of the corn crop,” said Sterling Smith, futures specialist with Citigroup. “The crop needs a little more heat now and temperatures are expected to rebound to more seasonal ranges.” US wheat futures edged higher, supported by a round of bargain buying following last week’s 2.1 percent price drop to a more than three-week low.

At 10:31 am CDT (1531 GMT), CBOT September corn was down 1/2 cent at $4.91-1/2 a bushel after bottoming out at $4.89 a bushel earlier in the session. The intraday low was the lowest price for front-month corn since trading at $4.87-3/4 on October 7, 2010. The new-crop December contract continued its decline, falling 3-1/4 cents to $4.72-2/3. December corn has fallen for six days in a row and eight of the last nine sessions.

CBOT August soyabeans were up 2-3/4 cents at $13.52-1/2 a bushel while new-crop November was down 15-1/4 cents at $12.13-1/4 a bushel. The front-month contract hit its lowest since June 1, 2012 early on Monday. CBOT September wheat was up 2-1/4 cents at $6.52-1/2 a bushel. Dealers said wheat’s decline last week had been driven mainly by the weakness of the corn market, and the market was oversold.Courtesy Reuters

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