07-12-2013 06:58 AM - edited 07-12-2013 03:38 PM
"In a post U.S. Department of Agriculture report environment, the markets are closing out the week focused on weather," said Mike Zuzolo, president of Global Commodity Analytics and Consulting in Lafayette, Ind.
"With no threatening weather on the horizon to hinder yield potential, traders saw no need to boost prices ahead of the weekend."
The markets had rallied earlier in the week on growing concerns about heat in the Midwest affecting the U.S. crop. But a monthly supply and demand report from the USDA Thursday reaffirmed that domestic supplies are poised to swell this year thanks to historically high acreage.
That report, along with a more benign weather forecast that includes more rain and less heat in the Midwest prompted traders to reduce risk premium in the market, Mr. Zuzolo said.
"New crop" futures--such as the November soybean and December corn contracts that represents crops to be harvested in autumn were the focus of traders, as investors continue to brace for U.S. supplies to rebuild substantially in 2013.
Traders are acknowledging good summer weather could offset any issues from delayed seedings and relieve the strain of tight current supplies.
The pending weekend kept some traders cautious, as they brace for the possibility that weather forecasts change substantially by the time trading resumes Sunday evening.
December corn had the largest percentage price drop, as weather is critical for corn crops going into their reproductive stage of development in the next couple of weeks, Mr. Zuzolo said.
Chicago Board of Trade corn for September delivery finished down 15 1/4 cents, or 2.7%, at $5.45 1/2 a bushel. The December contract settled down 17 3/4 cents, or 3.4%, to $5.09 1/4.
CBOT soybeans for August delivery finished down 43 cents, or 2.9%, at $14.29 a bushel. The November soybean contract settled down 33 1/2 cents, or 2.6%, to $12.57 1/4.
U.S. wheat futures finished lower, with the influence of falling corn and soybean prices overshadowing supportive export demand and tighter outlooks for world supplies from federal forecasters.
September wheat futures ended down 2 cents, or 0.3%, at $6.81 a bushel at the Chicago Board of Trade. Kansas City Board of Trade September wheat finished unchanged at $7.08 1/2 a bushel. MGEX September wheat finished down 3/4 cent, or 0.1%, at $7.66 1/2 a bushel.
-Ian Berry contributed to this article
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(END) Dow Jones Newswires
July 12, 2013 14:56 ET (18:56 GMT)
At the open:
In early trading, the Sept. futures corn contract is 8 cents lower at $5.52. New-crop Dec. corn futures are 8 cents lower at $5.18. The Aug. soybean futures contract is trading 12 cents lower at $14.60, new-crop Nov. soybeans are trading 13 cents lower at $12.77. Sept. wheat futures started 1 cent higher at $6.83 per bushel. The Aug. soymeal futures are trading$3.00 short ton lower at $455.00. The Aug. soyoil futures are trading $0.34 lower at $46.19.
In the outside markets, the NYMEX crude oil is $0.32 per barrel higher, the dollar is lower and the Dow Jones Industrials are 3 points higher.
USDA announces Friday that China bought 960,000 tons of U.S. corn for 2013-14 delivery.
How do you like those bananas?
The trade expects the USDA to announce a large sale of corn to China this morning, from what I hear. We'll know more at 8am.
Early calls: Corn is seen 2-4 cents lower (old-crop), soybeans 1-2 cents higher (old-crop), and wheat 2-4 cents higher. Meanwhile, new-crop corn 2-4 cents lower and soybeans are seen 3-5 cents lower.
Overnight grain, soybean markets=Trading mostly lower.
Crude Oil=$0.06 per barrel lower.
Wall Street=Seen flat, after JP Morgan reports a rise in 2nd quarter earnings.
World=Asia/Pacific stocks were higher and Europe's stocks are higher.
More in a minute,
07-12-2013 09:47 AM
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07-12-2013 10:22 AM
Set your Favorites tab to take you directly to the message listing for Marketing Talk. "Just a walk in the park Kaszanski!"
Captain Marko Ramius