February 22, 2013

 
US sees drop in corn prices
 

US corn prices have declined for a ninth consecutive session with an improvement in South America's weather conditions.

Meanwhile, bargain buyers lifted wheat off a seven-month low and took soy from a one-month bottom.

Trade was choppy as weather conditions continued to boost prospects for US wheat and South American corn and soybeans, pushing all three to recent lows early. Bargain buyers moved in, but a lack of follow-through purchases on corn left the market slightly weaker at the close.

The low prices also convinced funds to cease recent selling, said Arlan Suderman, senior market analyst for Water Street Advisory in Peoria, Illinois.

Corn and soy prices reached record highs in 2012 as drought ravaged US growing areas. However, prices fell back as US crops turned out better than expected, and large Brazilian and Argentine harvests in early 2013 look set to replenish global supplies.

The USDA is expecting better-global supplies of corn and soy in the coming months.