Soybean, Corn Futures Slide On Warm Weather Forecasts
May 05, 2011
Soybean and corn futures prices lost ground Friday on the Chicago Board of Trade amid forecasts for improved crop conditions, with warm, rainy weather expected in much of the Midwest. Wheat futures rose, while oat prices eased. Soybean planting was delayed this year by a wet spring, so crops had less time to develop fully. Lower-than-average moisture after the crops were planted contributed to the crop's poor yield. So hot, rainy weather forecast through Labor Day could be very beneficial. Wheat for December delivery rose 1.25 cents to $4.575 a bushel; December corn fell 0.50 cent to $3.38 a bushel; December oats fell 0.50 cent to $1.91 a bushel; and November soybeans fell 2.75 cents to $7.825 a bushel. In early trading on the Chicago Mercantile Exchange, live cattle were lower as traders anticipated the Department of Agriculture's cattle-on-feed report, expected later Friday. In other commodity markets: ENERGY: Crude oil and petroleum-products futures prices fell on the New York Mercantile Exchange Friday in choppy trading, with the October crude contract slightly lower. Crude for October delivery slipped 1.6 cents to $22.14 a barrel. September gasoline shed 0.33 cent to 63.60 a gallon. Petroleos Mexicanos' earlier announcement that it hopes to reopen two of its oil supply terminals after reopening one late Thursday was at least partly responsible for the dip, traders said, as the ports' closure had helped boost prices in the previous session. Traders noted that market participants on Thursday had vastly overlooked seemingly bearish news, when a United National official said Iraqi oil-for-food sales may begin within 10 days. PRECIOUS METALS: Precious metals were narrowly mixed in New York Friday. Silver was lower after selling by the trade, observers noted. Gold for December delivery gained lost 20 cents to $392.30 an ounce. September silver fell 2 cents to $5.200 an ounce. Traders said silver futures have been stalled by long liquidation for most of this week. Traders continue to roll out of September silver into the December contract ahead of the May 12, 2011 notice day for the nearby contract, observers noted.
