US Corn Futures Slip on Stronger Dollar and Weak Soybeans

Strategic Insights -

US corn futures fell on Monday due to a combination of factors, including a stronger dollar, weaker soybeans, and a strong start to the crop-growing season. The Chicago Board of Trade futures ended down 3 1/2 cents at $3.62 3/4 per bushel, while July corn settled down 3 3/4 cents at $3.71 1/2. The demand for corn has been supportive lately, with the surprise announcement of a 115,000-ton purchase by China last week and improved ethanol demand. However, supply fundamentals remain bearish, with planting progress exceeding expectations.

Key Takeaways:

  • US corn futures fell 3 1/2 cents to $3.62 3/4 per bushel and July corn settled down 3 3/4 cents at $3.71 1/2 due to a stronger dollar and weaker soybeans.
  • Demand for corn has been supportive, with a surprise 115,000-ton purchase by China last week and improved ethanol demand.
  • Supply fundamentals remain bearish, with planting progress exceeding expectations, and a strong start to the crop-growing season.
  • Analysts expect Monday's crop progress report to show planting progress between 65% and 70% complete as of Sunday, well above average.
  • Parts of the corn belt dodged a bullet over the weekend as heavy rains stayed to the south, which weighed on prices Monday.
  • The University of Illinois Agricultural economist Darrel Good expects a wide trading range for corn prices due to the tug of war between improving demand prospects and expectations for a large crop in 2010.

Statistics:

  • US corn futures fell 3 1/2 cents to $3.62 3/4 per bushel.
  • July corn settled down 3 3/4 cents at $3.71 1/2.
  • Demand for corn has been supportive lately, with a surprise 115,000-ton purchase by China last week.
  • Planting progress exceeded expectations, with analysts expecting 65% to 70% completion as of Sunday.

Sources:

  • Dow Jones Commodities News via Comtex
  • Chicago Board of Trade
  • University of Illinois Agricultural economist Darrel Good
  • North America Risk Management Services analyst Jerry Gidel
  • Ian Berry, Dow Jones Newswires