Chicago Board of Trade corn futures headed lower on Monday for a fifth straight session, retreating from early advances as concerns over weak demand pressured the market, traders said. Soyabean futures also sagged on larger-than-expected deliveries against futures while wheat futures were modestly higher.
At the CBOT as of 1:07 pm. CST (1907 GMT), the most active May corn contract was down 2-1/2 cents at $3.57 per bushel after dipping to $3.56-3/4, its lowest level since January 12. May soya was down 2-1/2 cents at $8.61 a bushel after falling to chart support at $8.60, its lowest since January 12 as well. May wheat was up 1/2 cent at $4.52-3/4 a bushel.
Corn was pressured in part by the US Department of Agriculture reporting export inspections of US corn in the latest week at 737,602 tonnes, in line with trade expectations. "The inspections were routine-type business, and not enough to change our perception of what ending stocks will be," said Brian Hoops, president of brokerage and commodity marketing advisory service Midwest Market Solutions. Also, the USDA last week projected that US corn supplies would rise to 12-year highs during the 2016-17 crop year as output gains outstrip demand increases.
Corn futures drew early support after the CBOT reported no deliveries against the March contract on first notice day. Soyabean futures fell on larger-than-expected March soyabean deliveries, and expectations of large South American harvests. However, CBOT soyameal futures rose on a short-covering bounce from contract lows set on Friday. Wheat futures were mixed, with the spot March contract supported by smaller-than-expected deliveries.
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