Tuesday, July 23, 2013

"Ideal weather sends corn, wheat prices to new lows"

Corn $4.85 down 13 cents; wheat $6.526 down 7 cents; soybeans $12.61  down 0.274.

From Agrimoney:
Corn prices slumped to their lowest since 2011, sending wheat futures to contract lows on both side of the Atlantic, as forecasts for benign Midwest weather during the important pollination period spurred the further removal of weather premium.
Corn for December, Chicago's best-traded contract, tumbled 3.0% to $4.83 a bushel, its lowest since November 2011.
The decline dragged on wheat, which is interchangeable with corn in many purposes, which tumbled 1.4% to $6.50 ½ a bushel for September delivery, the contract's lowest ever.
In Paris, the November wheat contract dropped below E190 a tonne for the first time, hitting E189.75 a tonne.
The falls were blamed in the main on the prospect of further near-ideal weather for the US corn crop - the world's biggest, and a key source of feed grain for many importers besides domestic users - raising the prospect of the harvest setting a record this year by a margin.
'Heavier than forecasted'
Overnight, thunderstorms which developed in parts of the western Corn Belt, one area where dryness has begun to raise concerns, "were heavier than forecasted", WxRisk.com said....MORE
US Farmland: Price Growth Slows, as Farm Profits Fall (corn now under $5.00)
"Deutsche slashes hopes for corn, soybean prices"
Macquarie Calling For Corn in the Low $4's 
Macquarie "Wheat 50% overvalued - corn to hit three-year low"
Corn: Deutsche sees potential for price below $4
"INSIGHT-Big U.S. harvest may hit grain prices, test high farmland values"

We'll have the ultimate W.A.G. (wild ass guess) trading scheme later this week, in the meantime the operative phrase is "Ideal weather".