US corn futures higher

US corn futures ended higher on Monday following firm crude oil but the market was volatile amid outlooks for better crop weather in the US after several weeks of disastrous flooding. It's a better forecast in that it doesn't appear to favour persistent heavy rains," DTN Meteorlogix forecaster Mike Palmerino said.
US corn for July delivery was up 3 cents per bushel at $7.24-1/4 per bushel, and down nearly 37 cents per bushel or almost 5 percent below the contract's record high for a spot month of $7.60 that was set early last week.
"There's not a lot of rain expected in the Midwest this week and the crop conditions should be improving slightly," said Jerry Gidel, analyst for North America Risk Management Inc.
Corn prices soared to record highs early last week as floodwaters from the major American waterway the Mississippi River and other smaller rivers harmed crops in top producing states like Iowa and Illinois. Investment Bank Goldman Sachs on Monday said the flooding would trim this year's corn harvest and boosted its 3-, 6-, and 12-month corn price forecasts to $7.70/bu.
Soyabeans also rallied last week on fears of harm to that crop and the wheat market was tracking corn and soya. By Monday, some traders chose to take profits and/or sell or liquidate some long positions on ideas the grain and soya markets may have been overbought. "We're down on better weather, that should improve the condition ratings and increase soyabean plantings," a trader said.
However, "a lot of acres were lost and won't be recovered so everyone knows we lost bushels, it's just a question of how many," he said. Signs a crippling Argentine farm protest may be ending soon also weighed on US soya prices.
"The Argentine situation may be a little better but that is really back and forth," Gidel said. Argentina is the world's third largest soya exporter and the largest exporter of soyameal and soyaoil. The farmer protests have been slowing Argentine exports, leading to increased US soya and soya product export business.