Planting weather slams corn futures
U.S. corn futures fell 3% to one-week lows Monday, as drier Midwest weather forecasts eased worries about planting delays for this year's crop.
Chicago Board of Trade corn for May delivery settled down 20 3/4 cents, or 3%, at $6.78 3/4. July corn, the most actively traded contract, finished down 24 3/4 cents, or 3.7%, at $6.36 1/2 a bushel. The December corn contract settled down 15 1/4 cents, or 2.8%, at $5.38 1/4.
Corn futures reversed the gains from last week after weekend rains in the U.S. Midwest weren't as widespread as previously forecast and near-term weather outlooks indicated farmers will have more favorable planting weather this week.
"The weather forecasts served as an all-clear signal for more of a somewhat normal planting pace to begin," said Don Roose, president of brokerage U.S. Commodities in West Des Moines, Iowa.
"Much better planting progress should be made across all of the Corn Belt in the six-to-10-day period, as mainly dry weather is finally expected to become widespread," private weather forecaster, Cropcast Weather Services wrote in a midday forecast.
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Corn futures jumped sharply a week ago due to forecasts for a spate of cold, wet weather to continue in the Midwest. The unfavorable weather has slowed corn planting--farmers have planted corn at a much slower pace than usual--and sparked concerns that production could suffer this year. Late planting leaves corn more vulnerable to summer heat during its key development stages.
But weather forecasts Monday are drier than they were before the weekend, making a pickup in corn planting likely this week. Forecasts for warmer, drier weather next week also could help speed up planting.
U.S. wheat futures fell Monday, as rain showers this week are expected to
benefit crops in the southern Plains. Rainfall this week is expected to improve the health of U.S. hard-red winter wheat crops that suffered from both persistent drought conditions and freeze damage this spring.
July wheat futures ended down 18 1/4 cents, or 2.5%, at $7.02 3/4 a bushel at the Chicago Board of Trade. Kansas City Board of Trade July wheat fell 21 1/4 cents, or 2.7%, to $7.56 3/4 a bushel. MGEX July wheat finished down 13 1/4 cents, or 1.6%, at $8.05 3/4 a bushel.
U.S. soybean futures finished lower, as improving weather for planting crops in the Midwest revived concerns about a substantial rise in U.S. supplies this year.
CBOT soybeans for July delivery, the most actively traded contract, finished down 18 cents, or 1.3% at $13.69 1/4. The November soybean contract settled down 14 cents, or 1.1%, at $12.07 1/4.
--Owen Fletcher contributed to this article
Write to Andrew Johnson Jr. at email@example.com
(MORE TO FOLLOW) Dow Jones Newswires
May 06, 2013 15:20 ET (19:20 GMT)
DJ UPDATE: Corn Futures Fall; Drier Weather Eases Planting Concerns->copyright
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