SINGAPORE: Chicago corn futures lost more ground on Thursday, amid improved weather outlook for planting season in the United States, and with traders adjusting positions ahead of the Easter holiday weekend.
Wheat and soybeans were also slightly weaker. “There is some improvement in the US weather after rains, which should help planting,” said one Singapore-based trader.
“The weather is likely to dominate the market.” The most-active corn contract on the Chicago Board of Trade (CBOT) was down 0.6% at $6.49 a bushel, as of 0347 GMT, extending losses for a fourth session.
Wheat lost 0.5% to $6.78-1/2 a bushel, while soybeans shed 0.3% to $15.06-3/4 a bushel. Market focus has shifted to forecasts of a drier, warmer weather that may boost spring field work in the US northern farm belt, which was hit by snow this week, and away from poor conditions for drought-affected winter wheat in the southern Plain.
After the Easter holidays, the US Department of Agriculture is scheduled to release its April crop supply/demand report on Tuesday, April 11.
The report will include figures for Argentine and Brazilian 2022-23 production of corn and soybeans. Argentina’s government announced a new plan setting a special exchange rate of 300 pesos per dollar to encourage soybean exports amid severe financial difficulties and foreign exchange shortages.
Argentina’s grains inspectors union ended a week-long strike after securing a deal to more than double salaries in line with the country’s surging inflation rate, it said on Wednesday.
Soft wheat exports from the European Union in the 2022/23 season that started in July had reached 23.15 million tonnes by April 2, compared with 21.52 million by the same week in 2021/22, data published by the European Commission showed.
Egypt’s General Authority for Supply Commodities set an international tender for wheat for shipment from May 10-20 and/or May 21-31, with an offers deadline on April 6.
Commodity funds were net sellers of CBOT corn, soybeans, wheat, soymeal and soyoil futures contracts on Wednesday, traders said.
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