Chicago | Reuters — Chicago corn futures fell on Tuesday after initial gains, pressured by demand uncertainty despite adverse weather delays to U.S. planting progress, analysts said.
Recent rainfall also pressured wheat, despite declining crop conditions, while soybeans moved lower on expectations of increased plantings if corn seedings continue to falter.
The most-active corn contract on the Chicago Board of Trade (CBOT) lost 10-1/2 cents to $7.93 a bushel (all figures US$).
Soybeans fell 14-3/4 cents lower at $16.30-1/2 a bushel, while wheat ended down 10 cents at $10.45-1/2 a bushel.
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Corn futures initially traded higher, reacting to slower-than-expected plantings reported by the U.S. Department of Agriculture, with just 14 per cent of corn planting complete by Sunday, lagging average analyst estimates of 16 per cent and well behind the five-year average of 33 per cent.
“We couldn’t hold the gains after the opening. That sends a message to the trade, that this is much bigger than the supply side,” said Mike Zuzolo, president at Global Commodity Analytics.
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Forecasts for warmer, drier weather weighed on the market.
“I think overall, I think it’s just some profit taking on the notion of better plantings next week,” said Brian Basting, commodity research analyst at Advance Trading.
Wheat also struggled as rains across parts of the U.S. Plains aided parched winter crops, though conditions continued to deteriorate through the weekend, USDA said.
The agency rated 43 per cent of the U.S. winter wheat crop in very poor or poor condition, up from 39 per cent the week prior, while leaving unchanged the good to excellent rating at 27 per cent, underscoring the impact of drought in the Plains wheat belt.
“You had a four-point increase in ‘very poor’ and ‘poor’ conditions, this late in the year, after rains. I can’t remember a time when I’ve seen that happen,” said Zuzolo.
Soybeans were under pressure from falling crude oil markets and cool and wet conditions in the U.S. Midwest that continued to limit corn and soybean planting. Some analysts think delayed U.S. corn planting could push farmers to plant more soybeans.
U.S. soybean planting was eight per cent complete, matching trade expectations but behind the five-year average of 13 per cent.
— Christopher Walljasper reports on agriculture and ag commodities for Reuters from Chicago.
