| Chicago corn futures rebounds from 8-month lows, soybean retreats |
| Date: 2010/6/9 Click: 1913 |
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Chicago corn futures rebounded from 8-month lows on Tuesday, as USDA report showed U.S. corn crop conditions deteriorated. Soybean dipped on higher-than-expected crops condition. Wheat remained unchanged.
July corn climbed 1.5 cents, or 0.4 percent, to 3.3725 dollars a bushel. July soybean dropped 4.0 cents, or 0.4 percent to 9.31 dollars a bushel.
U.S. Federal Reserve Chairman Ben Bernanke said late Monday that he doesn't expect the U.S. economy to fall back into a recession, and he also expressed confidence in European leaders' joint effort to cut deficit and manage huge debt loads. Euro rebounded against dollar as Bernanke's comments helped assuaged investors' fear that spreading eurozone debt crisis would derail the U.S. economic recovery. The mixed dollar and the rally in crude oil price helped to take the pressure off the grain market.
USDA said in a report late Monday that about 76 percent of the corn crop was rated good or excellent as of June 6, unchanged from a week earlier, and about 5 percent earned the lowest ratings of poor to very poor, 1 percentage point higher than the prior week. The deteriorating crop conditions have boosted the corn price. Trader noted that corn also got support from short covering after the sharp losses of corn in the past week.
Although the weaker dollar has lifted wheat to finally break a string of six straight losing sessions with an unchanged close, wheat still face mounting pressure from the abundant global supply and declining export demand of U.S. wheat.
About 75 percent of U.S. soybean crop was rated good or excellent as of June 6, which is higher than analyst's expectation, according to USDA. The prospect of higher yields of U.S. soybean this year and speculation that China would reduce its soybean purchases over the next several weeks have both contributed to drag down soybean price. |
