Profit-taking sinks grains Thursday
U.S. corn futures fell Thursday, stumbling to a one-week low on profit-taking after recent gains and weakening cash prices.
Chicago Board of Trade corn for July delivery, the most actively traded contract, finished down 10 3/4 cents, or 1.6%, at $6.54 1/4 a bushel. The December contract settled down 3 cents, or 0.5%, to $5.62 3/4.
The corn market succumbed to end-of-month profit-taking, after a recent rally, in the absence of supportive news to affect market fundamentals.
"Without anything new for traders to digest, traders took some profits off the table," said Michael North, senior risk management adviser at brokerage First Capitol AG in Platteville, Wis.
Declining cash prices, reflective of increased farmer selling and sluggish export demand provided added pressure to keep rices drifting lower throughout the session.
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The rains aren't providing the doom and gloom that some traders expected, Mr. North said. Traders acknowledge that despite some potential lost acres, yields will play a larger part in determining production than a 2 million drop in intended acreage, First Capitol AG's Mr. North said.
Market watchers said corn plantings are done for the most part with 86% of the crop planted as of Sunday, only four percentage points behind the average pace. Traders are also cautious of pushing prices higher, as rains--as long they aren't flooding rains--will benefit crops later in the growing season.
U.S. wheat futures finished lower, declining in unison with corn futures while the announced detection of unapproved genetically modified wheat raised anxiety about future export demand.
The discovery of the GMO wheat in Oregon, that isn't supposed to exist is troubling, said Louise Gartner, owner of brokerage Spectrum Commodities in New Richmond, Ohio. The detection opens up a host of questions, and cast a negative tone in the market, Ms. Gartner added.
Japan suspended imports of U.S. white wheat that was ubiquitously grown in Oregon after unapproved genetically-modified wheat was discovered at a farm in the state, a senior government official at Japan's Ministry of Agriculture, Forestry and Fisheries said Thursday.
July wheat futures ended down 4 cents, or 0.6%, at $6.98 3/4 a bushel at the Chicago Board of Trade. Kansas City Board of Trade July wheat dropped 1 3/4 cents, or 0.2%, to $7.46 a bushel. MGEX July wheat finished down 1/4 cent, or 0.03%, at $8.15 1/2 a bushel.
Soybean futures ended mixed amid position evening at the end of the month.
CBOT soybeans for July delivery, the most actively traded contract, finished down 6 cents, or 0.4% at $14.95 3/4. The November soybean contract settled up 3/4 cent, or 0.05%, to $5.62 3/4.
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(END) Dow Jones Newswires
May 30, 2013 15:32 ET (19:32 GMT)
DJ Corn Futures Slide To 1-Week Low on Profit Taking->copyright
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