Corn, Soybean Futures Rise On Negative Crop Reports
May 09, 2011
Department of Agriculture figures released Monday evening showed only a 1 percent improvement in soybeans and no improvement in corn. The results are slightly worse than a year ago. Fears that China's soybean crop is in bad shape also sent prices higher, said broker Mcwilliams Gallman at the Henning & Carey Trading Co. in Chicago. Expanded buying from Beijing would further strain already tight world supply. However, the gains were contained by forecasts for hot weather and normal rainfall in the Midwest through next week. The weather will help develop crops, which are not strong enough to withstand a normal or early frost. Wheat futures fell on word that Canada and Australia -- already top producers -- likely would experience bumper crops. Forecasts for good weather also pressured prices. Soybeans for November delivery rose 6.25 cents to $7.9575 a bushel; December corn gained 1 cent to $3.4875 a bushel; December wheat fell 1 cent to $4.64 a bushel. In other commodity markets: ENERGY: Crude-oil futures settled lower Tuesday on the New York Mercantile Exchange, while petroleum products finished mixed in thin trading ahead of the weekly inventory reports. Crude for October delivery settled at $21.56 a barrel, down 6 cents ahead of the inventory report, with forecasts calling for a build in stocks. The market saw some support on news that Iraq had complained to the U.N. that the number of monitors for the oil-for-food sale was too high, raising fears that oil shipments expected to begin around mid-September could be delayed. September gasoline shed 0.41 cent to 61.21 cents a gallon on reports of a large number of cargoes of gasoline headed to the U.S. from South America and Europe. September heating oil rose 0.10 cent to 61.13 cents a gallon. The contract is expected to see continued support given the low level of distillate supplies, according to market watchers. PRECIOUS METALS: Precious metals settled lower Tuesday in very light trading ahead of the upcoming Labor Day holiday weekend, analysts said. Richelle Tony, trader with Credit Suisse in New York, said the markets ''were painfully quiet'' given the lack of liquidity ahead of the weekend. Gold for December delivery fell 50 cents to $394 on the Comex division of the New York Mercantile Exchange. September silver shed 1.5 cents to $5.238 an ounce.
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