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Corn futures steady with USDA supply report in focus

Published 11/08/2011, 06:30 AM
Investing.com – Corn futures fluctuated between small gains and losses on Tuesday, amid improving U.S. corn crop harvest conditions and as traders squared positions ahead of Wednesday’s key monthly report on U.S. and global corn supplies.

On the Chicago Mercantile Exchange, corn futures for December delivery traded at USD6.5425 a bushel during European morning trade, easing up 0.1%. 

The December contract traded between a range of USD6.5212 a bushel, the daily low and USD6.5512, the daily high.

The U.S. Department of Agriculture said in its weekly crop progress report published after markets closed Monday that approximately 87% of the U.S. corn crop was harvested as of November 6, up from 78% in the preceding week and higher than the five-year average of 73% for this time of year.

In Iowa, the largest U.S. corn-growing state, nearly 95% of the crop was harvested, compared 87% a week earlier. In the second largest U.S. corn grower Illinois, 94% of the crop was harvested, up from 89% in the preceding week.

Corn prices found support after South Korea’s largest feed group Nonghyup Feed said earlier that it purchased 85,000 tonnes of corn, mostly from the U.S.

Meanwhile, the USDA was to release its closely-watched report on U.S. and global corn stockpiles for November on Wednesday.

The data was expected to show that U.S. corn inventories in the 2011-12 marketing season dropped to 795 million bushels, down from October’s estimate of 866 million.

Total U.S. corn production was expected to decline to 314.7 million metric tons, the lowest total since the 2008-09 marketing year.

The U.S. produced 38% of the world's corn last year, making it the both world’s largest corn producing nation and the largest exporter of the grain.

Commodity traders continued to eye developments out of the euro zone surrounding the region’s debt crisis.

Italian Prime Minister Silvio Berlusconi’s government faces a key parliamentary vote later in the day, amid growing opposition from within his own political party, while in Greece officials were to announce the new head of an interim government, amid ongoing efforts to avoid a potential default.

Elsewhere on the Chicago Mercantile Exchange, wheat for December delivery added 0.24% to trade at USD6.4075 a bushel, while soybeans for January delivery rose 0.46% to trade at USD12.0775 a bushel. 

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