New-crop corn slid more than 1 percent after a steep rally of about 54 percent in the last two months, while wheat dropped following a 3 percent gain in the previous session. the market will be looking to see if the coming rains could improve corn and soybean yields.
"In case of corn it seems that the damage was done, "For soybeans, I doubt that yields could be much higher than expected considering early plantings."
The fall in prices should be limited as investors await fresh trading cues from a key supply-demand report from the US Department of Agriculture later this week that will quantify crop damage from the worst drought in 56 years.
Chicago Board Of Trade November soybean fell 2.3 percent to $15.91-1/4 a bushel by 1010 GMT after climbing 1.7 percent last week. Soybeans dropped to a low of $15.75-3/4 a bushel earlier in the session, lowest since July 27.
December corn fell 1.11 percent to $7.98-1/2 a bushel after climbing 1.5 percent on Friday, while front-month wheat fell 1.21 percent to $8.80-1/2 a bushel.
In Paris, benchmark November milling wheat was down 2.5 euros or nearly one percent at 258.50 euros a tonne, in line with Chicago prices.
An upbeat US jobs report and private forecasts that the drought has hurt US crops more than government surveys indicate boosted grain prices on Friday.
WEATHER IMPACT
"Rains that started this weekend will continue at the beginning of this week and could relax the situation, However it will not significantly improve the condition of corn crops, these rains are too late for that."
Russian grain exports are off to a fast start in the new agricultural year even though Russia's exportable surplus has shrunk drastically in the drought, surprising analysts and raising questions about how long Russia can sustain the pace.
"Russian production is becoming more, rather than less uncertain as each day passes with a wide range of internal and external estimates," FCStone said in a note on Monday.
Private crop analysts have been slashing their US grain production estimates to below current government forecasts and the market now needs USDA confirmation before deciding on its next move.
Closely watched analytics firm Informa Economics on Friday predicted USDA's Aug. 10 crop report will estimate the US corn crop at 10.338 billion bushels, according to traders. That was down 10 percent from Informa's previous forecast and 20 percent below the USDA's latest estimate of 12.97 billion bushels.
Informa projected final US 2012 corn production at 11.224 billion bushels, traders said.
Doane Advisory Services forecast corn production at 10.792 billion bushels following an annual crop tour, while a Farm Futures Magazine survey put the corn crop even lower at 9.57 billion bushels.
Investment bank Goldman Sachs said it saw growing upside risks to wheat prices in the coming months due to continued dry weather in countries such as Argentina, India, Australia and the former Soviet Union.
For the latest updates on the stock market, PRESS CTR + D or visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment