GRAINS-Rain pushes corn to 12% weekly drop

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GRAINS-Rain pushes corn to 12% weekly drop


By Christopher Walljasper

CHICAGO, July 9 (Reuters)Chicago corn futures dipped on Friday, dropping 12% for the week as rain and reasonable temperatures had been anticipated to spice up U.S. Midwest crops.

Wheat adopted decrease, however was propped up by drier circumstances throughout the Northern U.S. Plains, whereas soybeans inched greater on long-term forecasts returning to sizzling, dry climate.

Essentially the most-active corn contract on the Chicago Board of Commerce (CBOT) Cv1misplaced 6-3/Four cents to $5.17 per bushel, dropping 12.22% for the week, its greatest drop for the reason that week ended Could 14.

CBOT soybeans Sv1 added 9-3/Four cents to finish at $13.29-1/Four per bushel, however fell 4.99% for the week, whereas CBOT wheat Wv1 eased Three cents to $6.15 per bushel, falling 5.78% for the week.

Climate forecasts displaying substantial rainfall throughout the Midwest together with reasonable warmth modified the corn market’s sentiment this week, encouraging the possibility that robust yields may offset shortfalls in planted space.

“Having all this rain throughout (corn) pollination and cooler temperatures are actually very best for yield potential,” stated Brian Hoops, senior market analyst at Midwest Market Options.

Grain markets consolidated forward of the U.S. Division of Agriculture’s month-to-month provide and demand forecasts, anticipated to indicate an elevated corn carryout.

“Does USDA decrease the yield some, based mostly on the dryness within the western states?” stated Chuck Shelby, president at Threat Administration Commodities. “That will most likely neutralize a number of the enhance in acres.”

Some merchants say the company is unlikely to alter yield or export projections this early within the season.

“The commerce is anticipating that the USDA goes to take a really conservative method, not make any main modifications to the stability sheets as a result of it’s nonetheless early,” stated Hoops.

Soybeans had been supported by a every day flash sale of 228,600 tonnes of soybeans to Mexico, whereas climate stays a danger, as key growth phases for the oilseed are nonetheless weeks away.

“The beans want extra rains in August to know what their yields going to be,” stated Shelby.

Weekly corn export gross sales totaled 371,400 tonnes for the week ended July 1, whereas soybeans export gross sales totaled 182,300 tonnes, and wheat gross sales totaled 290,800 tonnes, in keeping with the USDA – all according to market expectations.

(Reporting by Christopher Walljasper; further reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore Enhancing by Sonya Hepinstall)

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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.



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