Grain futures advanced on Friday, corn traded little changed, but headed for the first monthly gain since May, as exports from US, the top producer, increased.
On the Chicago Board of Trade, corn futures for March delivery traded little changed at $4.3263 a bushel by 13:16 GMT. Futures held in a range between day’s high and low of $4.3338 and $4.3263 per bushel. On January 10th prices touched $4.0638 per bushel, the lowest since August 2010.
The grain headed for a 2.5% monthly increase, the first monthly increase since May. Corn 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.
According to data by the US Department of Agriculture, released yesterday, US shipments of corn in the week ended January 23rd more than doubled to 1.9 million metric tons from 693 277 a week earlier.
Corn gained “on the back of stronger-than-expected export demand,” said today Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, cited by Bloomberg. US shipments surged to well above “even the highest guesses,” he added.
DTN reported on January 30th that in central Argentina episodes of scattered showers and thunderstorms during the next seven days will recharge the soil moisture and will favor pollinating corn and developing soybeans.
Scattered to widely scattered thundershowers have been reported in key corn areas of South Africa, with no significant hot weather expected. According to DTN, conditions will be mostly favorable for reproductive to filing corn during the observed period.
Elsewhere on the grains market, soybeans futures for settlement in March traded little changed at $12.7513 per bushel by 13:40 GMT, adding 0.02% for the day. Prices touched a session high at $12.7912 per bushel, while day’s low stood at $12.7512 per bushel. The oilseed settled last week 2.3% lower.
Wheat
On the Chicago Board of Trade, wheat futures for settlement in March added 0.13% to trade at $5.5412 per bushel by 13:40 GMT. Prices jumped to a session high of $5.5588 per bushel, while day’s bottom was touched at $5.5312. On January 29th, prices touched $5.5075 per bushel, the weakest since July 14th 2010. Last week, the grain settled 0.6% higher, snapping seven weeks of declines, the longest losing streak since October 2008.
Wheat slumped 22% last year, 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.
DTN’s January 30th forecast called for Midwest winter wheat areas to continue experiencing below normal temperatures, but not bitter cold over the next seven days. Damage threats to wheat had eased, but a round of snow, ice and rain may result in some localized crop stress.
Meanwhile, DTN reported that no significant cold threat is indicated over the Southern Plains in the next 10 days. However, there may be increasing snow and rainfall threats for the southern growing areas later in the observed period.
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