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Corn futures advance as USDA supply report eyed

Published 05/11/2011, 06:03 AM
Futures Pros – Corn futures were up for a third day on Wednesday, amid ongoing concerns over deteriorating U.S. corn crop conditions and as markets awaited the release of a key monthly report on U.S. and global corn supplies.

On the Chicago Mercantile Exchange, corn futures for July delivery traded at USD7.1112 a bushel during European morning trade, climbing 0.6%.

It earlier rose by as much as 0.74% to a daily high of USD7.1212 a bushel.

Persistent rainfall in the U.S. Great Plains and U.S. Midwest, key corn-growing regions have fuelled concerns that U.S. farmers would delay planting of corn crops, potentially threatening yields and reducing the quality of the harvest. 

The U.S. Department of Agriculture said in a report on Monday that approximately 40% of U.S. corn crops were planted as of May 8, down from 80% a year earlier and below the five-year average of 59% for this time of year.

According to the U.S. Grains Council, nearly 85% of the crop needed to be planted by May 15, or farmers faced higher risks that yields would fall below the historical average.  

Meanwhile, the USDA was to release its closely-watched monthly report on U.S. and global corn stockpiles later in the day. The data could show that global corn inventories dropped to 122.5 million metric tons in April, down from 145.8 million tons a year earlier. 

U.S. corn supplies were forecast to remain unchanged at 675 million bushels, the lowest total since the 1995-96 season.

The U.S. is both the world’s largest corn producing nation and the world’s largest exporter of the grain.

Elsewhere, wheat for July delivery added 0.7% to trade at USD8.0212 a bushel, while soybeans for July delivery dipped 0.16% to trade at USD13.3675 a bushel during European morning trade.

The USDA was expected to lower its global wheat inventories estimate to 182.1 million tons, compared to last month’s estimate of 182.8 million tons.


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