US MIDDAY: corn and soya plunge

October 01, 2013

Corn and Soya
Corn and Soya

US corn futures plunged to a three-year low on Monday and soyabeans sped to a five-week low after a government crop report surprised traders by showing larger-than-expected stocks of both commodities. Chicago Board of Trade corn futures were headed for their worst quarterly performance in 17 years and soyabeans the poorest such performance in four years after the US Agriculture Department’s quarterly stocks report.

USDA, in potentially one of the last reports issued before a possibly shutdown of the US government, estimated corn supplies at 824 million bushels and soyabeans at 141 million bushels as of September 1. Analysts, on average, expected corn stocks at 681 million bushels and soyabeans at 124 million. “Stocks reports were psychologically bearish on corn and beans,” said Charlie Sernatinger, analyst at ED&F Man Capital.

CBOT December corn was down 10 cents, or 2.2 percent, at $4.44 per bushel as of 12:07 CDT (1707 GMT). November soyabeans fell 33-1/2 cents or 2.5 percent, to $12.86-1/4 per bushel. Corn touched the lowest level since September 2010 on a continuous chart while soyabeans fell below the psychological threshold of $13 per bushel for the first time since mid-August.

CBOT December wheat was 2 cents higher at $6.85. USDA showed slightly fewer wheat stocks than analysts expected but gains were capped by plunging corn futures, traders said. The government said this year’s wheat crop totalled 2.128 billion bushels. The wheat market has been underpinned by strong demand from China and Brazil, which has helped take US exports to more than half the USDA’s target of 29.9 million tonnes just four months into the 2013/14 marketing year. Courtesy Reuters

Soya, Corn, Agriculture
Published in ZaraiMedia.com
Soya, Corn, Agriculture

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