Grain futures lost ground on Tuesday, with corn falling amid a speculation that rain in Argentina may boost harvest.
On the Chicago Board of Trade, corn futures for March delivery lost 0.24% to trade at $4.2238 a bushel by 15:45 GMT. Futures held in a range between day’s high and low of $4.2462 and $4.2112 per bushel. On January 10th prices touched $4.0638 per bushel, the lowest since August 2010.
The grain settled last week 1.7% lower after it lost nearly 40% in 2013, the steepest annual drop on record amid expectations the global output will surge to 964.3 million tons in 2013-2014 season, boosted by record production in the US, the world’s top producer.
The weather forecast called for favorable conditions across Argentina, boosting expectations for a larger harvest, which pressured the corn market.
DTN reported on January 21st that scattered showers have developed in Argentina in the central and eastern Buenos Aires province. According to the website, there is a high probability of rainfall and lower temperatures to spread on Thursday through the important corn and soybeans areas of northern Buenos Aires and Santa Fe. A lighter rainfall may also occur in Cordoba province along with southern Buenos Aires through La Pampa.
“Rain would aid the pollination of the corn crop in Argentina, raising prospects for a good South American harvest”, said Vanessa Tan, an analyst at Phillip Futures Pte in Singapore, cited by Bloomberg.
Elsewhere on the grains market, soybeans futures for settlement in March lost 2.24% to trade at $12.8612 per bushel by 15:46 GMT. Prices touched a session high at $13.1388 per bushel, while day’s low stood at $12.8512 per bushel. On January 16th prices touched $13.2988 per bushel, the strongest level since December 27th. However, the oilseed settled last year 8.5% lower.
Wheat advanced, but traded in proximity to 3-1/2-year lows
On the Chicago Board of Trade, wheat futures for settlement in March added 0.18% to trade at $5.6462 per bushel by 15:47 GMT. Prices jumped to a session high of $5.6538, while day’s bottom was touched at $5.6088 per bushel, the same level as on January 10th and the weakest since July 2010.
Wheat settled last 5-day period 0.9% lower, which was a seventh consecutive weekly decline, the longest losing streak since October 2011. The grain continued last year’s downward trend, when it slumped 22%, marking the largest annual decline since 2008, on expectations for a record global output of 712.7 million tons, according to data by the US Department of Agriculture.
DTNs January 21st forecast called for potentially harmful conditions as the latest cold outbreak may reach the northernmost red winter wheat areas of the Midwest. However, the snow cover will probably protect the crop from the freezing temperatures. Meanwhile, the website reported that the coldest of the new Arctic outbreak seems to stay east of the key Southern-Plains wheat-growing areas.
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