Chicago Board of Trade (CBOT) old-crop July corn futures leaped nearly 2 percent on Monday on tight stocks of corn and strong cash markets. "July is definitely benefiting from the firm cash basis and tight near-term supplies. The western Corn Belt basis is very strong," said Sterling Smith, market specialist for Citigroup.
July corn futures rose to a one-week high, where buying waned as the contract bumped into technical chart resistance near the its 100-day moving average. New-crop December corn was firm but gains were muted due to a turn to nearly ideal crop growing weather in the US Midwest. Soyabean futures eased as a turn to nearly ideal crop growing weather suggested 2013 crop production will rebound after last season's drought-reduced harvest.
Wheat turned up on bargain buying after slipping earlier to a 2-1/2 month low on seasonal harvest pressure as US farmers gained traction cutting the 2013 US winter wheat crop. At 10:55 am CDT (1555 GMT) CBOT corn for July delivery was up 10-1/2 cents per bushel at $6.65-1/2 while new-crop December was up 3-1/4 at $5.36-1/4. CBOT July soyabeans were down 7-1/2 cents per bushel at $15.09 and July wheat was up 3-1/2 at $6.84-1/4.
Gains were slowed in the corn market and pressure was applied to new-crop December corn and new-crop November soyabean futures contracts due to crop growing conditions that have turned nearly ideal in the US Midwest after record rains early this spring led to the slowest planting pace in 17 years.
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