April 3, 2008

US market switch from wheat to corn on USDA reports

After the USDA said farmers are planting less corn, corn quotations resumed their ascent on the Chicago Board of Trade (CBOT) on Wednesday.

US corn contract for May delivery closed at 584 cents a bushel, up 1 percent, also reinforced by the news of heavy rains in the corn belt of the US, where spring planting has begun.

Soy closed the trading session at 1,234 cents a bushel, up 1.5 percent for the day, for the July contract.

Meanwhile, wheat declined with July contracts quoted at 912.5 cents a bushel, off 2.6 percent from the previous day.

On Wednesday, soy was buoyed by a buyback of contracts forcing a positive correction, following the trend for higher corn prices.

Meanwhile, wheat continued the downward trend on Monday to close at 912 cents of the dollar a bushel, down 2.6 percent.

USDA announced an increase in the area planted for wheat for, rising from 60.4 million acres to 63.8 million acres.