July 14, 2010

US corn futures falls on improved crop condition   

CBOT corn futures closed lower on Tuesday (July 13). September futures were US$0.04 lower at US$3.75 1/4.

Contract for December was also lower at US$3.87. Favourable weather and crop condition ratings are the key negative factors which seemed to provide the selling pressure on Tuesday (July 13).

The rating of the US crop condition improved last week with the percent good to excellent rating climbing two points to 73%. The rating is well above the 10-year average at 66% and is slightly above 71% a year ago. USDA reported 38% of the crop is silking, up from 19% a week ago and compares to 26% for the five-year average.

Futures were lower despite positive influences from the outside markets. Crude oil was up US$2 per barrel and the dollar index fell to a two month low. The stock market also continued its recent recovery.

The outside markets provided a generally negative tone for corn futures with crude oil lower and the dollar index higher.