Promising weather forecasts weigh on wheat, corn prices; Soybeans rise on supply concerns
By APTuesday, July 20, 2010
Promising weather weighs on wheat, corn prices
NEW YORK — Favorable weather forecasts put pressure on wheat and corn prices Tuesday as investors now expect a better harvest.
Soybeans rose as inventories tightened. New crops aren’t expected to be harvested for another 40 to 50 days, said Mark Schultz, chief analyst at Northstar Commodity in Minneapolis.
Corn for September delivery slid 7.5 cents, or 2 percent, to settle at $3.74 a bushel, while September wheat fell 5.25 cents to $5.77 bushel.
Dry weather in recent weeks had some investors betting on a weak harvest, but new forecasts point to cooler, wetter conditions.
“Corn is well ahead of schedule in pollination, and getting through that critical time without any danger in the forecast has really put pressure on this market,” said John Sanow, an analyst with Telvent DTN in Omaha, Neb.
Soybeans for August delivery climbed 3.75 cents to settle at $10.1175 a bushel. November soybeans, meanwhile, dropped 35 cents, or 3.5 percent, to $9.73.
“We’re really seeing a battle between the demand for old crops and new crops, especially for beans because the supply is so tight right now,” Schultz said.
Metal and energy contracts mostly rose with the broader market. The dollar also traded higher.
Gold for August delivery rose $9.80 to settle at $1,191.70 an ounce, while silver for September delivery added 15 cents to $17.693 an ounce. September copper rose 6.35 cents to $3.0015 a pound.
Benchmark crude for August delivery rose 68 cents to $77.58 a barrel on the New York Mercantile Exchange.
Among other August energy contracts, heating oil rose less than a penny to $2.0247 a gallon, while gasoline rose 2 cents to $2.0786 a gallon. Natural gas rose 8 cents to $4.59 per 1,000 cubic feet.
