Mon Oct 29, 2012
* Corn falls to lowest level since Oct. 15
* Soybeans slide nearly 1 pct
* Export pace hints at demand rationing -analysts
By Colin Packham
SYDNEY, Oct 29 (Reuters) - U.S. corn dropped to a two-week low and soybeans extended their decline into a third straight session on Monday, with weak export figures and improved crop weather in South America dragging on prices for both grains.
Wheat also slid despite concerns that yields could fall amid unfavorable weather elsewhere.
Chicago Board of Trade December corn had dropped 0.64 percent to $7.33 a bushel by 0255 GMT, after earlier marking 7.32-1/4, its lowest level since Oct. 15. It has dropped for six sessions on the trot.
"Corn continues to face headwinds," said Luke Matthews, a commodities strategist at Commonwealth Bank of Australia.
"Corn has had some lacklustre demand, as demonstrated by export figures (from the U.S. Department of Agriculture), but that's necessary given the tight supply and the need for the market to ration demand."
December soybeans fell 0.86 percent to $15.47-3/4 a bushel, having declined as low as $15.46 a bushel, while December wheat dropped 0.23 percent to $8.61-3/4 a bushel.
RATIONING
Corn and soybeans have come under pressure in recent sessions amid signs that price highs hit this summer following the worst drought across the U.S. Midwest in 56 years have prompted demand rationing.
The USDA said on Friday that corn sales totalled 142,400 tonnes in the week ended Oct. 18, below estimates for 150,000 to 250,000, while soybean sales were also lower than expected at 522,200, versus estimates of 650,000 to 850,000 tonnes.
A pick up in South American weather, expected to provide a timely boost to crops in Argentina and Brazil, has also pressured grain prices.
Excessive wet weather had been slowing fieldwork in Argentina, while dry weather had been an issue in parts of Brazil.
TRANSPORT DISRUPTION
U.S. weather is also being closely watched by traders.
Hurricane Sandy, which could become the largest storm ever to hit the United States, is set to bring much of the East Coast, including New York and Washington, to a virtual standstill in the next few days with battering winds, flooding and the risk of widespread power outages.
Sandy is unlikely to have a direct impact on U.S. crops, however, although it may disrupt the transport of harvests, analysts said.
Traders remain cautious about the weather outlook for U.S. plains, renewing concerns over U.S. wheat production.
Much of the U.S. Midwest remains in need of rains, and despite some improvement in soil conditions last week, meteorologists said cold conditions could hit this week in eastern Colorado and western Kansas, while dry weather is forecast for the U.S. Plains hard red winter wheat region.
Grains prices at 0255 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 861.75 -2.00 -0.23% -1.26% 871.44 44
CBOT corn 733.00 -4.75 -0.64% -1.21% 747.59 34
CBOT soy 1547.75 -13.50 -0.86% -1.04% 1561.85 46
CBOT rice $15.14 $0.03 +0.20% +1.51% $15.10 41
WTI crude $86.05 -$0.23 -0.27% +0.00% $90.60 24
Currencies
Euro/dlr $1.293 $0.000 -0.04% -0.07%
USD/AUD 1.037 0.001 +0.06% -0.08%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Editing by Joseph Radford)
* Corn falls to lowest level since Oct. 15
* Soybeans slide nearly 1 pct
* Export pace hints at demand rationing -analysts
By Colin Packham
SYDNEY, Oct 29 (Reuters) - U.S. corn dropped to a two-week low and soybeans extended their decline into a third straight session on Monday, with weak export figures and improved crop weather in South America dragging on prices for both grains.
Wheat also slid despite concerns that yields could fall amid unfavorable weather elsewhere.
Chicago Board of Trade December corn had dropped 0.64 percent to $7.33 a bushel by 0255 GMT, after earlier marking 7.32-1/4, its lowest level since Oct. 15. It has dropped for six sessions on the trot.
"Corn continues to face headwinds," said Luke Matthews, a commodities strategist at Commonwealth Bank of Australia.
"Corn has had some lacklustre demand, as demonstrated by export figures (from the U.S. Department of Agriculture), but that's necessary given the tight supply and the need for the market to ration demand."
December soybeans fell 0.86 percent to $15.47-3/4 a bushel, having declined as low as $15.46 a bushel, while December wheat dropped 0.23 percent to $8.61-3/4 a bushel.
RATIONING
Corn and soybeans have come under pressure in recent sessions amid signs that price highs hit this summer following the worst drought across the U.S. Midwest in 56 years have prompted demand rationing.
The USDA said on Friday that corn sales totalled 142,400 tonnes in the week ended Oct. 18, below estimates for 150,000 to 250,000, while soybean sales were also lower than expected at 522,200, versus estimates of 650,000 to 850,000 tonnes.
A pick up in South American weather, expected to provide a timely boost to crops in Argentina and Brazil, has also pressured grain prices.
Excessive wet weather had been slowing fieldwork in Argentina, while dry weather had been an issue in parts of Brazil.
TRANSPORT DISRUPTION
U.S. weather is also being closely watched by traders.
Hurricane Sandy, which could become the largest storm ever to hit the United States, is set to bring much of the East Coast, including New York and Washington, to a virtual standstill in the next few days with battering winds, flooding and the risk of widespread power outages.
Sandy is unlikely to have a direct impact on U.S. crops, however, although it may disrupt the transport of harvests, analysts said.
Traders remain cautious about the weather outlook for U.S. plains, renewing concerns over U.S. wheat production.
Much of the U.S. Midwest remains in need of rains, and despite some improvement in soil conditions last week, meteorologists said cold conditions could hit this week in eastern Colorado and western Kansas, while dry weather is forecast for the U.S. Plains hard red winter wheat region.
Grains prices at 0255 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 861.75 -2.00 -0.23% -1.26% 871.44 44
CBOT corn 733.00 -4.75 -0.64% -1.21% 747.59 34
CBOT soy 1547.75 -13.50 -0.86% -1.04% 1561.85 46
CBOT rice $15.14 $0.03 +0.20% +1.51% $15.10 41
WTI crude $86.05 -$0.23 -0.27% +0.00% $90.60 24
Currencies
Euro/dlr $1.293 $0.000 -0.04% -0.07%
USD/AUD 1.037 0.001 +0.06% -0.08%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Editing by Joseph Radford)
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