Corn resumed its decline by falling for the first time this week behind expectations of a record harvest in the United States, the largest grower in the world.
Futures for corn with a delivery date in December dropped to a price per bushel as low as $3.415 today after losing 0.7% of its value. The contract was trading at $3.435 late morning Singapore time on the Chicago Board of Trade. The commodity declined to its lowest in four years last September 15th and 11th when prices reached $3.3575 per bushel.
Corn futures have declined by 25% during the past year behind outlook that harvests in the US will reach a record high of 14.395 billion bushels, based on estimates from the US Department of Agriculture (USDA). The government department claimed last week that soybeans will similarly achieve a new record when output climbs to 3.913 billion bushels. The combined production of corn and soybeans is seen to overwhelm the storage facilities of growers across the country who have a combined capacity of only 13 billion bushels.
Senior analyst Sam Sloane from Sydney’s Commodities Pty says that, “It seems the market doesn’t want to push corn prices down much further than the current contract lows. The impending harvests and huge production levels for both corn and beans is proving to be a strong hurdle to overcome before we see any real traction for an increase in prices.”
Soybeans with a delivery date in November increased to a price per bushel of $9.865 after climbing by 0.6%. The commodity slid to its lowest since July 2010 on September 11th when prices dropped to $9.695. Wheat futures for December retreated by 0.2% for a price of $4.9525 per bushel after reaching the lowest among most active contracts in over four years yesterday at $4.91.
The material has been provided by InstaForex Company – www.instaforex.com
Corn resumed its decline by falling for the first time this week behind expectations of a record harvest in the United States, the largest grower in the world.
Futures for corn with a delivery date in December dropped to a price per bushel as low as $3.415 today after losing 0.7% of its value. The contract was trading at $3.435 late morning Singapore time on the Chicago Board of Trade. The commodity declined to its lowest in four years last September 15th and 11th when prices reached $3.3575 per bushel.
Corn futures have declined by 25% during the past year behind outlook that harvests in the US will reach a record high of 14.395 billion bushels, based on estimates from the US Department of Agriculture (USDA). The government department claimed last week that soybeans will similarly achieve a new record when output climbs to 3.913 billion bushels. The combined production of corn and soybeans is seen to overwhelm the storage facilities of growers across the country who have a combined capacity of only 13 billion bushels.
Senior analyst Sam Sloane from Sydney’s Commodities Pty says that, “It seems the market doesn’t want to push corn prices down much further than the current contract lows. The impending harvests and huge production levels for both corn and beans is proving to be a strong hurdle to overcome before we see any real traction for an increase in prices.”
Soybeans with a delivery date in November increased to a price per bushel of $9.865 after climbing by 0.6%. The commodity slid to its lowest since July 2010 on September 11th when prices dropped to $9.695. Wheat futures for December retreated by 0.2% for a price of $4.9525 per bushel after reaching the lowest among most active contracts in over four years yesterday at $4.91.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: