Chicago | Reuters — Chicago Board of Trade corn futures ended lower on Tuesday, consolidating below a decade high reached earlier, as traders assessed risks to global supply from the war in Ukraine and a slow start to planting in the U.S.
Wheat futures also weakened, with profit-taking pressuring the markets, traders said.
The July corn contract settled down 7-1/4 cents at $7.99-3/4 per bushel, after rising earlier to $8.14 a bushel, the highest price for a most-active contract since September 2012 (all figures US$). The all-time high for a most-active contract was $8.49 in August 2012.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
Chilly weather that is delaying the start of U.S. corn plantings has supported prices, analysts said. The market is particularly sensitive to potential problems for the U.S. crop as Russia’s invasion of Ukraine has stalled massive Ukrainian grain exports.
“Certainly any improvement in the weather in the U.S. Midwest will prompt some profit taking,” said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage in Iowa.
U.S. corn planting was four per cent complete as of Sunday, below the five-year average of six per cent, the U.S. Department of Agriculture said in a weekly report on Monday. Analysts surveyed by Reuters were expecting five per cent.
The crop report also underscored drought risks to the U.S. wheat crop that could exacerbate a shortfall in supply from Ukraine. USDA rated 30 per cent of U.S. winter wheat in good-to-excellent condition, a 26-year low.
CBOT July wheat ended down 19-3/4 cents at $11.09 per bushel after earlier reaching its highest price since March 9. Losses in crude oil contributed to weakness in grain markets, traders said.
CBOT May soybeans ended up 1-3/4 cents at $17.16-1/2 per bushel amid strong export demand for U.S. supplies, traders said. Most-active July soybeans eased 1-1/2 cents to $16.91-3/4 per bushel.
USDA, in a daily notice, said exporters sold 123,650 tonnes of U.S. soybeans to unknown buyers for delivery during the 2021-22 marketing year.
CBOT July soyoil matched a contract high set on Monday.
— Reporting for Reuters by Tom Polansek in Chicago, Gus Trompiz in Paris and Enrico Dela Cruz in Manila.
