👀 Copy Legendary Investors' Portfolios in One ClickCopy For Free

Grain futures decline; corn drops to 2-week low on demand concerns

Published 12/16/2013, 06:06 AM
Corn drops to 2-week low on demand concerns
Investing.com - U.S. grain futures declined on Monday, with corn prices falling to a two-week low amid concerns over a slowdown in demand for U.S. supplies.

On the Chicago Mercantile Exchange, corn futures for March delivery traded at USD4.2163 a bushel, down 0.8%. The March contract fell to a session low of USD4.2160 a bushel, the weakest level since December 2.

CBOT March corn plunged 2.01% on Friday to settle at USD4.2540 a bushel after a group of U.S. Senators introduced a bipartisan bill to eliminate the corn ethanol mandate, underlining concerns over a slowdown in demand for the grain by ethanol producers.

Meanwhile, concerns over declining demand from China intensified last week after the Asian nation rejected the entry of another U.S. corn cargo after detecting an unapproved genetically-modified strain.

China has blocked a total of five cargoes of U.S. corn since mid-November, fuelling concerns over a slowdown in demand from the world’s second largest corn consumer.

Corn prices have been on a downward trend in recent months amid expectations this year’s corn harvest in the U.S. will be the largest on record. Prices of the grain slumped to a four-year low of USD4.1540 a bushel on November 8.

Elsewhere on the CBOT, wheat for March delivery traded at USD6.2463 a bushel, down 0.65%. Wheat prices slumped to a daily low of USD6.2440 a bushel earlier, the cheapest since August 14.

The March contract ended down 0.79% on Friday to settle at USD6.2860 a bushel.

Wheat prices have been under pressure in recent sessions amid indications of ample global supplies.

The U.S. Department of Agriculture forecast global wheat supplies at 182.8 million metric tons, up 2.4% from its October estimate and above expectations for 178.8 million tons, citing higher production in Canada and Australia.

Meanwhile, soybeans futures for January delivery traded at USD13.2038 a bushel, down 0.55%. Prices of the oilseed traded in a range between USD13.1913 a bushel and USD13.3088 a bushel.

The January soy contract ended up 0.28% on Friday to settle at USD13.2740 a bushel.

Soybean prices remained supported on signs of robust export demand for U.S. supplies.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.