Tight supplies shoot nearby corn higher
U.S. corn futures settled mixed Friday, with nearby futures up on concerns about tight current supplies.
Chicago Board of Trade July corn settled up 11 1/2 cents or 1.8% at $6.55 a bushel. December corn, a contract associated with supplies to be harvested this fall, fell 2 1/4 cents or 0.4% to $5.33 a bushel.
Nearby corn rose as strong cash markets continued to reflect strong demand for scarce supplies. Supplies remain tight after severe drought shrank the U.S. crop last year.
Cash markets are also strong across the Farm Belt as farmers are showing little interest in selling stored supplies at this time. Farmers are focused on wrapping up planting before looking to market their remaining supplies, analysts said.
Higher futures prices could lure more farmers to sell their stored corn.
"The market needs to kind of encourage some producer movement again," said Aaron Curtis, a commodity risk consultant with MID-CO Commodities in Bloomington, Ill.
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The rise in July corn erased some of the contract's losses over the previous two sessions. July corn on Thursday had settled at a three-week closing low, attracting buyers on Friday who felt the grain was becoming undervalued.
But deferred corn futures ended lower, on expectations for a large U.S. harvest this fall. Current weather forecasts are mostly favorable for the corn crop, with mostly warm and wet conditions predicted over the next two weeks.
"Rains will once again spread across the Midwest through the weekend," MDA Weather Services said in a daily forecast note. "While these rains will slow [soybean] planting, they will also maintain ample moisture for corn and soybean germination and early growth across much of Midwest, especially northern and western areas."
"Overall, weather looks pretty favorable for the next couple of weeks," Mr. Curtis said.
Soybean futures, like corn, ended with nearby contracts up on tight current supplies, while November soybeans were down on expectations for a sizable crop this year.
July soybeans settled up 6 1/4 cents or 0.4% at $15.16 1/2 a bushel. November soybeans settled down 2 1/4 cents or 0.2% at $12.98 1/4 bushel.
Wheat futures fell on expectations for adequate U.S. and world wheat supplies this year. The U.S. Department of Agriculture this week raised its forecast for domestic wheat output this year.
CBOT July wheat settled down 4 3/4 cents or 0.7% at $6.80 3/4 a bushel, a three-week closing low. KCBT July wheat fell 7 cents or 1.0% to $7.11 1/2 a bushel. MGEX July wheat fell 8 cents or 1.0% to $8.04 a bushel.
--Andrew Johnson Jr. contributed to this article.
Write to Owen Fletcher at email@example.com
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(END) Dow Jones Newswires
June 14, 2013 15:03 ET (19:03 GMT)
DJ UPDATE: U.S. Corn Settles Mixed; Nearby Futures Rise on Tight Supply->copyright
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