SINGAPORE: Chicago corn prices extended losses on Monday as expectations of improved US planting weather weighed on prices, while soybeans advanced for a second straight session.
Corn rises for 2nd session on fund buying, market eyes US planting
Wheat prices gave up some of previous session’s robust gains, which were triggered by tensions in the Black Sea and concerns over French crop condition.
Fundamentals
The most-active corn contract on the Chicago Board of Trade (CBOT) was down 0.2% at $4.33-1/4 a bushel, as of 0015 GMT, while soybeans added 0.2% to $11.87 a bushel.
Wheat lost 0.6% to $5.63-3/4 a bushel.
Rains across the Midwest have boosted soil moisture, although the wet weather has delayed early field work in the central and eastern growing regions. But drier weather favourable to corn planting is likely.
Argentina’s Buenos Aires Grains Exchange on Friday trimmed its forecast for the 2023/24 season’s corn crop to 52 million metric tons, citing damage from the Spiroplasma bacteria and saying it could not rule out further cuts.
On Friday, renewed drone attacks on Black Sea grain ports underpinned wheat prices.
Russian authorities have halted grain exports on some ships belonging to Aston, one of the biggest local grain trading houses, two industry sources said, but the company denied there were any delays.
The state of French soft wheat, already the worst in four years, declined slightly last week, while spring barley conditions were at their worst on record, data from farm office FranceAgriMer showed on Friday, as frequent rain made fields waterlogged.
Some 65% of French soft wheat was rated as in “good or excellent” condition by April 1, down from 66% a week earlier and down from 93% a year ago, FranceAgriMer said in a cereal crop report.
Large speculators increased their net short position in Chicago Board of Trade corn futures in the week ended April 2, regulatory data released on Friday showed.
The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, increased their net short position in CBOT wheat and increased their net short position in soybeans.