New-crop US corn futures fell for the fifth time in seven sessions on Monday as much of the Midwest had weekend showers and more rain is expected at a time when corn is starting to pollinate. But soyabean meal futures jumped to a new contract high over concerns about low supplies.
Pollination is the most important period of development for determining the size of the corn harvest. Food companies, ethanol producers and livestock producers are hoping a record-large crop will replenish low inventories. "The new-crop corn is strictly reacting to weather," said Tomm Pfitzenmaier, an analyst for Summit Commodity Brokerage. "If it rains with widespread coverage, the corn price is going to continue to decline."
Chicago Board of Trade December corn fell 1.3 percent to $4.94-1/2 a bushel by 11 am CDT (1600 GMT), near Friday's near two-week low of $4.91 a bushel. September corn was down 0.8 percent at $5.39-3/4 a bushel. The US Department of Agriculture will provide traders with a fresh indication of the state of corn plants in a weekly crop progress report at 3 pm CDT (2000 GMT) on Monday.
Soya futures climbed on concerns about low supplies, with soyameal hitting a new contract high. The soya crop's key development period is still a few weeks off, leaving uncertainty about the size of the next harvest. Nearby August soyabeans climbed 1.7 percent to $15.16-1/4 a bushel, while new-crop November soyabeans jumped 1 percent to $12.86-3/4 a bushel. August soyameal soared 3.6 percent to $499.70 per short tonne after reaching a new contract high of $501, topping the previous contract high of $484.70 from Friday. CBOT September wheat slipped 1.1 percent to $6.57 a bushel.
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