HAMBURG/CANBERRA: Chicago corn on Monday slipped away from an 18-month high on Friday on expectations that U.S. farmers will respond to a recent price rally by planting more corn.
Wheat futures also fell, with Northern Hemisphere crops not facing winter weather threats this week. Soybeans were down as Brazil’s crop is progressing well.
Chicago Board of Trade most active corn was down 0.7% to $5.01-1/4 a bushel at 1210 GMT after climbing to $5.13-1/4 on Friday, the highest level since August 2023, on strong U.S. export demand.
The U.S. Department of Agriculture is scheduled to issue crop estimates at its annual Agricultural Outlook Forum on Feb. 27. Farming lender CoBank forecasts that U.S. farmers will plant 94.55 million acres of corn in 2025, up about 4% from 2024.
“Markets are starting to expect the USDA this week will increase its estimate of U.S. corn plantings, which is weakening prices after last week’s highs in corn,” said Matt Ammermann, commodity risk manager at StoneX.
Corn, soy rise on South America output concerns
“Brazil’s corn harvest and corn planting for the second crop is also progressing well.”
Chicago wheat fell 1.4% to $5.95-1/4 a bushel, while soybeans were down 0.1% to $10.55 a bushel.
Traders said weather was seen as overall positive for wheat and for South American soybean harvesting. Wheat demand is slack, with few purchase tenders in the market.
“Soybeans are being weakened with the Brazilian crop making positive progress, with Brazilian and other South American new crop soybeans about to enter the export markets in large volumes, while Chinese import demand remains weak,” Ammermann said.
“Wheat is weakened by positive crop pictures. Next week is March and soon the market can focus on the Northern Hemisphere wheat breaking its winter dormancy phase. The crop picture does not look threatening so far although the U.S. and Black Sea need some moisture. Meanwhile, (the) EU needs it to dry out a bit.”
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