Commodity Blog

Commodity Prices – Corn

Hogs futures gained today on speculation that prices declined too much last week, considering strong demand in the US. Exports of meat rose, also adding to demand. October futures for hog settlement rose $0.00275 (0.4 percent) to $0.7515 per pound by 13 on CME.

Soybean prices dropped today on speculation that demand in China and the US may slow after prices surged. November futures for soybean delivery slid $0.125 (1.2 percent) to $10.10 per bushel as of 13:15 on CBoT, the biggest drop since August 19th. December futures for soybean-oil delivery dropped $0.0048 (1.2 percent) to $40.05 per pound.

Corn slipped today as rains improved outlook for wheat output and on speculation that demand for ethanol would fall after oil prices declined. Speculators continue to bet on price increase, anyway. December futures for corn delivery fall $0.0225 (0.5 percent) to $4.3925 per bushel on CBoT.

Gold gained today on speculation that low prices would encourage investors to buy the precious metal. Most analysts say that the decline of prices is temporary and may end soon. It can be considered a good buying opportunity for long-term investors. December futures for gold delivery advanced $6.10 (0.5 percent) to $1,177.30 per ounce on COMEX.

Corn and soybean prices went up today as demand for supplies from the US grew after drought and high temperatures harmed crops from Germany to Russia. Grain output in Germany estimated to drop as much as 11 percent, from 49.6 million metric tons in 2009 to 44 million this year. Drought hurt crops across at least 10.3 million hectares (25.5 million acres) in Russia, causing the government to declare emergencies in 27 crop-producing regions. December futures for corn delivery went up $0.0775 (2 percent) to $4.015 per bushel on CBoT. November futures for soybean delivery rose $0.1175 (1.2 percent) to $9.9975 per bushel as of 10:32.

Corn and wheat advanced today on concern that drought in Russia may curb supplies and prompt traders to turn to U.S. crops. The harvest expected to be below 80 million metric tons and some analysts reduce their forecasts even below 70 million tons, while previously forecasts promised the harvest to be above 85 million tons or even above 90 million. Low supplies may cause Russian government to restrict exports of crops.

Chad Henderson, a market analyst for Prime Consultants Inc. said:

The Russian crop problems are not just about wheat. The trend has shifted from rising inventories to declining supplies.

With decreasing supplies from Russia, traders may shift their attention to U.S. crops. U.S. the largest exporter of corn and wheat, while corn is the biggest U.S. crop.

December futures for corn delivery gained $0.0225 (0.6 percent) to $3.8025 per bushel on CBoT, after touching yesterday the lowest level since July 1. September futures for wheat delivery went up $0.0525 (0.9 percent) to $5.9475 per bushel as of 10:19.

Corn and soybeans price gained on speculation that dry weather may harm crops in the U.S., the largest grower and exporter in the word. As much as 20 percent of the Midwest crops threatened by heat wave over the next six weeks as temperatures may reach 38 degrees Celsius (100 degrees Fahrenheit). These speculations spurred buying, which is driven primarily not but demand itself, but rather by concern for lower supplies. December futures for corn delivery gained $0.07 (1.8 percent) to $3.94 per bushel as of 10:35 on CBoT. November futures for soybean delivery rose $0.0825 (0.9 percent) to $9.6275 a bushel

Gold slid in New York after prices rose to the highest level in three weeks. The precious metal encountered resistance at the $1,215 level. The analysts say that price below $1,200 is good opportunity to buy. August futures for gold delivery slipped $5.60 to $1,207.90 per ounce by 12:32 on COMEX.

Cattle and hogs futures gained today on outlook that demand for U.S. exports would rise as stocks gained and the dollar fell. The dollar tumbled today as much as 0.8 percent versus the basket of six major currencies, increasing attractiveness of U.S. exports. August futures for cattle delivery gained $0.01275 (1.4 percent) to $0.9075 per pound by 9:14 on CME. August futures for hog settlement went up $0.00525 (0.7 percent) to $0.80575 per pound.

Copper prices rose today as declining stockpiles suggested that demand would remain strong despite the slowdown of the global economic recovery. LME-monitored inventories declined 12 percent this year and fell to the lowest level in seven months today. September futures for copper delivery rose $0.092 (3.2 percent) to $3.9925 per pound by 11:33 a.m. on COMEX.

Corn prices dropped today on prediction that rainfalls would increase soil moisture and boost harvest in the U.S., the largest exporter in the world. Analysts say that prices are high enough, despite fewer than planned acres were sowed last month because of unfavorable weather. December futures for corn delivery slid $0.0275 (0.7 percent) to $3.8175 per bushel as of 12:54 on CBoT.

Wheat gained today on outlook that production in the U.S., Canada and Russia would decline because of adverse weather. U.S. output may decline 6.7 percent in the year started June 1st; Canadian farmers sowed 7.1 percent less acres than in the previous year; Russia expected to harvest 55.9 million metric tons of wheat, 9.5 percent fewer than previously predicted. September futures for wheat delivery gained $0.0475 (1 percent) to $4.805 per bushel as of 10:24 a.m. on CBoT.

Corn and soybeans fell today on forecast that warm weather would boost harvest. Another reasons for drop of the commodities were the stronger dollar and the outlook for lower demand from China. December futures for corn delivery slid $0.0375 (1 percent) to $3.6825 per bushel by 11:09 on the Chicago Board of Trade. November futures for soybean delivery fell $0.11 (1.2 percent) to $9.25 a bushel.

Sugar dropped today, erasing previous gains, after new home sales in the U.S. tumbled, signaling that the economic recovery may stall. Markets were also bothered by slumping equities and falling crude oil prices. October delivery for raw sugar slipped $0.0011 (0.7 percent) to $0.1581 per pound on ICE Futures U.S.

Wheat and soybeans gained as heavy rains halted fieldwork in the U.S. Precipitation in an area from Iowa through Texas last week was six times larger than normal. The excessive rainfalls may delay soybean planting, which was 91 percent finished as of June 13th, while winter-wheat harvesting was 9 percent complete. September futures for wheat delivery advanced $0.11 (2.4 percent) to $4.785 per bushel as of 10:51 on CBoT. November futures for soybean delivery gained $0.065 (0.7 percent) to $9.22 per bushel.

Corn rose on speculation that demand from overseas importers and domestic ethanol producers will rise. China has purchased 120,000 metric tons from U.S. by June 14th. U.S. ethanol producers may use 4.7 billion bushels of corn in the marketing year starting on September 1st, compared to 4.55 billion in the previous year. December futures for corn delivery added $0.0425 (1.1 percent) at $3.7925 per bushel on CBoT.

Sugar prices advanced today as importers replenish stockpiles and after the weaker dollar has increased attractiveness of commodities. World sugar inventories have fell 27 million tons in the past two seasons. The U.S. currency dropped 1.3 percent versus the basket of six major currencies. October delivery for raw sugar rose $0.0007 (0.4 percent) to $0.1591 per pound by 10:58 on ICE Futures U.S. in New York.

Corn gained today amid speculations about rising demand in China and the U.S. China has purchased 120,000 metric tons of corn in the U.S. today. U.S. ethanol industry expected to use 4.7 billion bushels of corn in 2011. July futures for corn delivery added $0.0275 (0.7 percent) to $3.7375 per bushel as of 11:40 on CBoT.

Corn gained today as Chinese stockpiles declined, fueling speculation that China will increase imports from the U.S. China sold 524,800 metric tons of corn from government reserves today to satisfy domestic demand. The biggest user of corn is the U.S., while China being the second biggest. December futures for corn delivery gained $0.0175 (0.5 percent) to $3.6625 per bushel by 10:37 a.m. on CBoT.

Gold advanced today, heading for the third weekly gain, as the low prices increased the appeal of the precious metal. Trader’s perception of gold as an alternative currency is another positive factor as troubles in Europe draw investors to the metal in search of a safety. Some experts think that the prices are still too high to attract many traders and gold should encounter resistance at the $1,250 level. August futures for gold delivery rose $8.30 (0.7 percent) to $1,230.50 as of 12:48 on COMEX.

Corn gained today after the yesterday’s government report showed that the condition of the U.S. crop worsened. About 5 percent of the corn crop was rated from poor to very poor. July futures for corn delivery gained $0.0075 (0.2 percent) to $3.365 per bushel by 9:56 on the Chicago Board of Trade.

Wheat prices went up on speculation that rains will slow the harvest. By June 6th farmers harvested around 3 percent of the crop, which is 6 percent lower than the five-year average for this period. July futures for wheat delivery advanced $0.0225 (0.5 percent) to $4.3450 per bushel as of 10:15 on CBoT.

Cattle futures advanced on speculation that the price, which fell to the lowest level in five months, will boost demand. The weaker dollar also increased the demand, making the U.S. meat exports cheaper. August futures for cattle delivery went up $0.002 (0.2 percent) to $0.87925 per pound by 12:12 p.m. on CME.