🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Grains mixed; Corn falls to fresh 3-year low on U.S. demand concerns

Published 11/19/2013, 06:04 AM
Investing.com - U.S. grain futures were mixed on Tuesday, with corn prices falling to a fresh three-year low amid growing concerns over a decline in U.S. demand.

On the Chicago Mercantile Exchange, corn futures for December delivery traded at USD4.1325 a bushel, up 0.45%.

The front-month December contract fell to a session low of USD4.1060 a bushel earlier, the weakest level since August 18, 2010.

CBOT December corn 2.37% lower on Monday to settle at USD4.1200 a bushel as investors liquidated long positions after the U.S. Environmental Protection Agency proposed to reduce the amount of ethanol in the nation's gasoline supply, sparking concerns over a slowdown in demand.

Based on the new proposal, 12.7 billion to 13.2 billion gallons of corn ethanol would be used in the nation’s fuel mix, the lowest level since 2011.

One bushel of corn is currently used to make about 2.8 gallons of ethanol.

Corn prices have been on a downward trend in recent months amid expectations this year’s corn harvest in the U.S. will be the largest on record.

The U.S. Department of Agriculture said Monday nearly 91% of the corn harvest was completed as of November 17, up from 84% in the preceding week and above the five-year average of 86% for this time of year.

Elsewhere on the CBOT, soybeans futures for January delivery traded at USD12.8488 a bushel, down 0.2%. Prices of the oilseed traded in a range between USD12.8213 a bushel, the daily low and a session high of USD12.9300.

The January soy contract ended 0.55% higher on Monday to settle at USD12.8740 a bushel.

The USDA said that approximately 95% of the U.S. soy harvest was completed as of last week, up from 91% harvested a week earlier and in line with the five-year average of 96% for this time of year.

Soy traders continued to monitor weather forecasts and crop conditions in major soy-growing countries in South America.

Meanwhile, wheat for December delivery traded at USD6.4688 a bushel, 0.6% higher. Wheat prices traded in a range between USD6.4275 a bushel, the daily low and a session high of USD6.4738 a bushel.

The December contract slumped to USD6.4200 a bushel on Monday, the lowest since September 18, before settling at USD6.4220 a bushel, down 0.35%.

According to the USDA, nearly 63% of the winter-wheat crop was in ‘good’ to ‘excellent’ condition, compared to 65% a week earlier but still significantly higher than the 34% recorded in the same week a year earlier.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.