April 23, 2010

US corn futures has declined and is heading for the first weekly drop in three weeks on speculation that favourable weather will accelerate planting and the dollar's strength may erode demand for US supplies.

Corn for July delivery declined as much as US$0.02 to US$3.695 a bushel on the CBOT at 11:35 a.m., Tokyo time. The price has fallen 1% this week.

About 19% of the corn crop was planted as of April 18, compared with 3% a week earlier, the Department of Agriculture said on April 19. The average over the past five years is 9%.

"US corn planting is progressing further with good crop weather in the Midwest," Shuji Sugata, research manager at Mitsubishi Corp. Futures Ltd. in Tokyo, said. The strong dollar also put pressure on the market, making US crops expensive for importers holding other currencies, he said.

Meanwhile, soy for July delivery was stable at US$10.1375 a bushel after touching a record of US$10.1575 yesterday (Apr 22), since January 11. The oilseed has risen 1.9% this week, gaining for the third straight week, due to China's anticipated purchase of US supplies.