Corn prices tumble as more favorable weather forecast boosts supply expectations
By APMonday, July 19, 2010
Favorable weather pushes corn prices lower
NEW YORK — Corn prices dropped sharply Monday after new weather forecasts pointed toward improving growing conditions in the Midwest.
Dry, hot weather in recent weeks had some investors betting that the crop that’s still growing would not be as big as previously believed. More favorable weather now point toward a stronger harvest.
“It’s a wetter forecast and not as hot,” said Jason Ward, an analyst with Northstar Commodity in Minneapolis. That could boost corn supplies and send prices lower.
Corn for December delivery fell 13.25 cents, or 3.3 percent, to settle at $3.94 per bushel. That’s corn that is still growing and will be harvested in the fall.
The retreat comes after nearly three weeks of unchecked gains. December corn had risen 18.4 percent since June 29 before Monday’s drop.
“It got a little bit ahead of itself,” Ward said of the corn market.
Corn for September delivery, which has already been harvested, also fell sharply, losing 13.25 cents, or 3.4 percent, to $3.815 a bushel.
Other grain and bean prices followed corn lower, but with more modest declines. September wheat fell 5 cents to settle at $5.8225 a bushel, while soybeans for August delivery dipped 11.5 cents to $10.08 a bushel.
Metal and energy contracts traded in a tight range as the stock market was mixed throughout the day and as the dollar inched slightly higher.
Gold for August delivery fell $6.30 to settle at $1,181.90 an ounce, while silver for September delivery fell 24.5 cents to $17.543 an ounce. September copper rose less than a penny to $2.938 a pound.
Benchmark crude for August delivery rose 53 cents to $76.54 a barrel on the New York Mercantile Exchange.
Among other August energy contracts, heating oil rose less than a penny to $2.0170 a gallon, while gasoline also rose less than a penny to $2.059 a gallon. Natural gas fell .9 cents to $4.510 per 1,000 cubic feet.
