Chicago corn, soybean rise amid falling wheatSouce:Xinhua Publish By Jane B. Hatcher Updated 23/01/2013 5:18 pm in Business / no comments
CHICAGO, Jan. 22 — Chicago corn and soybean rose Tuesday while wheat dropped sharply.
The most active corn contract for March delivery gained one cent, or 0.14 percent, to close at 7.285 dollars per bushel. March wheat shed 12 cents, or 1.52 percent, to settle at 7.7925 dollars per bushel. March soybeans jumped 22.5 cents, or 1.57 percent, to close at 14.5175 dollars per bushel.
March corn price was nearly unchanged as a result of the balance between a lower wheat market and a sharply higher soybean market.
Drier weather forecast in Brazil and Argentina has raised concerns that corn production in the two countries may be slashed. A south American analyst has cut corn production estimate for Brazil to 70.7 million tons for 2012-13. The U.S. Department of Agriculture (USDA) still put its estimate at 71 million tonnes.
Meanwhile, export demand for corn continued to be lackluster. Slow pace of sales and shipment, and dim ethanol production outlook will jointly put pressure on corn prices for a long term.
March wheat traded sharply lower on profit taking as well as recent overbuying.
Export demand for wheat also remained in question, as South Korea bought 60,000 tonnes of feed wheat from South America and India overnight and the United Arab Emirates bought 20,000 tonnes of hard wheat from Australia overnight. The report that 92 percent of Ukraine winter grain crop is projected to be good to satisfactory condition after favorable planting conditions further dampened wheat.
However, dry weather outlook in U.S. western plains with little to no precipitation over the next 7-14 days is considered to be supportive to wheat market in a long term.
Soybean traded sharply higher on a weak dollar and strong export demand.
The USDA announced that U.S. private exporters sold 120,000 tonnes of soybeans to China for the 2013-14 marketing year.
Untimely rainfall in some areas of Brazil has delayed the harvest of soybeans in the country, triggering speculations that early soybean demand may turn to the U.S., which is expecting a tightening supply outlook.