Corn prices fell for a ninth straight session on Wednesday as South American weather improved, but bargain buyers lifted wheat off a seven-month low and took soyabeans from a one-month bottom. Trade was choppy as weather conditions continued to boost prospects for US wheat and South American corn and soyabeans, pushing all three to recent lows early. Bargain buyers moved in, but a lack of follow-through purchases on corn left the market slightly weaker at the close.
Corn's losing streak is the longest in 5-1/2 years. The low prices also convinced funds to pause recent selling, said Arlan Suderman, senior market analyst for Water Street Advisory in Peoria, Illinois. "We hit some intermediate levels of support, starting with wheat and corn, but really all the markets. I'm not convinced we're at the bottom, but we were oversold," Suderman said.
Chicago Board of Trade March corn touched a one-month low before ending down 3/4 cent at $6.95-1/2 a bushel. Corn and soyabean prices reached record highs in 2012 as drought ravaged US growing areas. But prices fell back as US crops turned out better than feared, and large Brazilian and Argentine harvests in early 2013 look set to replenish global supplies.
Early expectations are for robust US spring planting of corn and soyabeans. "We have a long planting season and growing season ahead, and I think maybe (selling) is a little overdone," said Shawn McCambridge, analyst at Jefferies Bache in Chicago, but added that there appears to be little reason to encourage a bullish view. Traders have noted growing dissatisfaction at still relatively high US old crop corn prices, with South Korea's largest feedmaker, NOFI, excluding US grain from an international tender to purchase up to 195,000 tonnes of corn. US corn was seen as not acceptable due to price and quality concerns.
"The crisis drought of 2012 now looks like it's being followed by good South American crops and prospects of a normal US harvest, and importers want to see prices marked down to reflect this," one European trader said. March soyabeans rose 2-1/4 cents, or 0.2 percent, to $14.23 a bushel, after touching the lowest nearby price since January 11. Friday's US Department of Agriculture (USDA) report forecast better-than-expected global supplies of corn and soyabeans in the coming months. Chicago March wheat added 3-1/2 cents, or 0.5 percent, to $7.35-1/2 a bushel.