Grain futures mixed, US corn stockpiles at the highest since 1994

Grains were mixed on Thursday, with corn declining for a third day on speculations US corn stockpiles in December increased at the fastest pace in 19 years.

On the Chicago Board of Trade, corn futures for March delivery traded at $4.1263 a bushel by 14:44 GMT, falling 0.95% for the day. Futures held in a range between day’s high and low of $4.1662 and $4.1238 per bushel, the lowest since November 19th. The grain lost nearly 40% in 2013, the steepest annual drop on record, on projections that the global output will surge to 964.3 million tons in the 2013-2014 season, boosted by record production in the US, the world’s top producer.

According to a Bloomberg survey of 24 analysts, US corn inventories on December 1st probably totaled 273.4 million metric tons, the most since 1994 and 34% higher than a year ago.

The weather conditions in Brazil were beneficial for the oilseed, while in Argentina the hot weather diminished the already low soil moisture, harming the corn and soybeans developing crops. DTN reported on January 8th that conditions will remain mostly favorable for developing soybeans in Rio Grande do Sul and southern Parana. According to the website, rainfall may remain limited in northern Parana and Mato Grosso during the next 7 days, having some impact on filling soybeans. However, no major crop stress is indicated at this time. In addition, early soybean harvest progress will be favored by lighter rain showers in Mato Grosso. Meanwhile, variable rain pattern is expected in Argentina. The website reported, in central Argentina, high temperatures and little rainfall at this time wane soil moisture and increase stress on developing corn and soybeans. On Thursday and Friday, moderate to heavy showers and thunderstorms along with lower temperatures will favor the developing crops. Crop stress is expected to continue in the growing areas of southern Buenos Aires and La Pampa, which may limit the planting of double-cropped soybeans in these areas.

Elsewhere on the grains market, soybeans futures for settlement in March added 0.19% to trade at $12.7163 per bushel by 14:45 GMT. Prices swung between day’s high and low of $12.7788 and $12.6738 per bushel respectively. On January 2nd prices touched $12.6262 per bushel, the lowest since November 8th. The oilseed settled last year 8.5% lower.

Wheat down as well

Wheat futures for settlement in March declined by 0.69% to trade at $5.8463 per bushel by 14:45 GMT. Prices jumped to a session high of $5.9075, while day’s bottom was touched at $5.8438 per bushel, the weakest level since May 2012. The grain slumped 22% in 2013, the largest annual decline since 2008, on expectations for a record-high global output of 711.42 million metric tons, according to data by the USDA.

DTNs January 8th forecast called for the extreme cold to moderate across the Midwest, with temperatures reaching above-normal levels by the end of the week and to continue through the first half of next week. No damaging cold is expected during the next 7-10 days for the winter wheat areas. Meanwhile, no significant cold threats are indicated during the next seven days, in the Southern Plains. There is also a possibility of beneficial rains to occur in southern growing areas, with drier conditions elsewhere.