Investing.com – Corn futures advanced on Monday, bouncing off a four-month low as the previous session’s sharp decline created bargain buying opportunities for investors.
On the Chicago Mercantile Exchange, corn futures for July delivery traded at USD6.4050 a bushel during European morning trade, jumping 1.95%.
It earlier rose as much as 3.7% to hit a daily high of USD6.5250 a bushel.
Corn futures plunged nearly 9% on Friday to hit USD6.1475 a bushel, the lowest price since March 16 after the U.S. Department of Agriculture upwardly revised their estimates on total U.S. corn inventories on Thursday.
According to the data, total U.S. corn stockpiles as of June 1 stood at 3.67 billion bushels, 12% higher than initially projected.
U.S. farmers planted 92.28 million acres of corn in the 2011-12 season, 1.8% more than previously estimated and the second highest since 1944.
The higher-than-expected crop report prompted Goldman Sachs to lower its six-month forecast for corn prices by 26% to USD5.75 a bushel, compared to a previous estimate of USD7.80 a bushel.
Fears of tightening global supplies and concerns over lower-than-expected yields from U.S. crops had driven prices to a record high of USD7.9975 a bushel on June 10.
However, the steep decline triggered some bargain buying from traders reluctant to bet that prices would fall further as concerns mounted that adverse weather in the U.S. Midwest during July and August could damage the quality of the crop.
Agribusiness financial service provider Rabobank said in a report over the weekend that while the USDA reports are bearish for the grain market, the agency may lower its estimates on U.S. acreage and stockpiles in its next release on August 11.
“Incomplete crop reports coming out of the U.S., unpredictable weather worldwide, consumption at historical highs and tight supplies will cause corn prices to move back up by year end,” the report said.
Elsewhere, wheat for July delivery edged 0.35% higher trade USD5.8300 a bushel, while soybeans for July delivery climbed 0.56% to trade at USD13.2275 a bushel during European morning trade.
On the Chicago Mercantile Exchange, corn futures for July delivery traded at USD6.4050 a bushel during European morning trade, jumping 1.95%.
It earlier rose as much as 3.7% to hit a daily high of USD6.5250 a bushel.
Corn futures plunged nearly 9% on Friday to hit USD6.1475 a bushel, the lowest price since March 16 after the U.S. Department of Agriculture upwardly revised their estimates on total U.S. corn inventories on Thursday.
According to the data, total U.S. corn stockpiles as of June 1 stood at 3.67 billion bushels, 12% higher than initially projected.
U.S. farmers planted 92.28 million acres of corn in the 2011-12 season, 1.8% more than previously estimated and the second highest since 1944.
The higher-than-expected crop report prompted Goldman Sachs to lower its six-month forecast for corn prices by 26% to USD5.75 a bushel, compared to a previous estimate of USD7.80 a bushel.
Fears of tightening global supplies and concerns over lower-than-expected yields from U.S. crops had driven prices to a record high of USD7.9975 a bushel on June 10.
However, the steep decline triggered some bargain buying from traders reluctant to bet that prices would fall further as concerns mounted that adverse weather in the U.S. Midwest during July and August could damage the quality of the crop.
Agribusiness financial service provider Rabobank said in a report over the weekend that while the USDA reports are bearish for the grain market, the agency may lower its estimates on U.S. acreage and stockpiles in its next release on August 11.
“Incomplete crop reports coming out of the U.S., unpredictable weather worldwide, consumption at historical highs and tight supplies will cause corn prices to move back up by year end,” the report said.
Elsewhere, wheat for July delivery edged 0.35% higher trade USD5.8300 a bushel, while soybeans for July delivery climbed 0.56% to trade at USD13.2275 a bushel during European morning trade.