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Thursday, July 26, 2012

Corn and soybeans prices july 27 2012

Corn, soybeans, wheat, grains prices july 27 2012, Chicago soybeans rose on Friday, recouping some of previous session's deep losses triggered by rains in the parched U.S. grain belt, while corn
dipped for a fourth day out of five this week.

Corn and soybeans were headed for their first weekly drop after rallying in the past five weeks to record highs as the worst drought in half a century devastated crops across the U.S. Midwest.

"Grains are coming down mainly due to rain forecast which will benefit soybeans," said Lynette Tan, investment analyst at Phillip Futures in Singapore. "The damage to corn has been done, so the downside in corn will be less."

Chicago Board of Trade new-crop December corn fell half a cent to $7.75-3/4 a bushel by 0243 GMT, while actively traded November soy gained 0.3 percent to $15.71-1/2 a bushel. September wheat lost 0.3 percent to $8.81-1/4 a
bushel.

The front-month corn has lost 5 percent this week after gaining 42 percent in the last five weeks of rally, while wheat is down 6.6 percent, giving up gains after rising 55 percent since mid-June. Soybeans are down 5.5 percent after climbing 28 percent in the past five weeks.

As scattered rain in the north and east of the farm belt this week brought the first significant relief to this summer's drought agronomists said even a small amount of moisture will help the soybean crop avoid the fate facing corn, which has been decimated by the unrelenting heat.

Rain in the northern Midwest this week has likely improved crop prospects there but heat and dryness in the southwest continue to stress corn and soybeans, according to agricultural meteorologists.

POOR YIELDS
Corn yield prospects in central and east-central Iowa were highly variable as drought and periods of extreme heat this summer diminished production potential, scouts on a crop tour said on Thursday.

Disappointing export sales also weighed on corn, soybean and wheat prices this week. The recent rally has chilled demand from overseas buyers.

China cancelled contracts to buy 240,000 tonnes of new-crop corn, booking profits for supplies it originally agreed to buy at much lower prices. Good crop weather in China allowed it to back out of its commitments.

Declining crop prospects in the Black Sea region have added to nervousness on grain markets amid renewed talk of potential export restrictions by Russia, two years after an export ban by the country sent wheat prices soaring.

Iraq's purchase of 150,000 tonnes of Russian wheat in a tender, announced late on Wednesday, eased concerns, however, while pressuring U.S. prices.

Fears of disruption to Russian supply were also calmed by news that the Russian government has not changed its forecast for this year's grain harvest, and by comments from the head of the country's grain union that export limits were not needed.

The International Grains Council cut its forecast of the world maize crop by 5.8 percent due to the worst U.S. drought since 1956 and forecast stocks falling to six-year lows.

Spring wheat potential in the northern U.S. Plains was 8.2 percent higher than 2011 as an early planting protected the crop from harm when temperatures surged during the summer.

The 2012 U.S. hard red spring wheat crop was projected to yield 44.9 bushels per acre, up from 41.5 bushels per acre in 2011 and up 7.7 percent from the tour's five-year average of 41.7 bushels per acre, scouts on an annual crop tour said on Thursday.

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