June 7, 2011
CBOT soy and corn fall on drier US weather
CBOT soy fell the most in more than four weeks and corn dropped for a second session on speculation that drier, warmer weather last week allowed US farmers to accelerate planting delayed by an unusually wet spring.
Some muddy fields dried out enough to support planting machinery, said Drew Lerner, the president of World Weather Inc. Over the next two weeks, crops will get frequent rains that will aid germination and improve conditions of newly planted crops, Lerner said. The US is the biggest grower and exporter of corn and soy.
"Weather forecasts look more promising for improved planting and crop development," said Greg Grow, the director of agribusiness for Archer Financial Services Inc. in Chicago. "The markets are also trading increased rains in Europe, China, and India," where crops were hurt by drought, he said.
Soy futures for July delivery fell 31.25 cents, or 2.2%, to US$13.8325 a bushel on the CBOT, the biggest drop since May 5. Last week, prices rose 2.5%, touching a two-month high on June 3.
Corn futures for July delivery dropped 22 cents, or 2.9%, to US$7.32 a bushel in Chicago, capping a two-session decline of 4.5%, the most since May 6.
About 86% of the US corn crop was planted as of May 29, the Department of Agriculture said last week in a report. That compares with 97% a year earlier and an average of 95 % the previous five years.
Soy planting was 51% complete, compared with the year-earlier total of 71%, the same as the five-year average, the department said.
Grow said corn planting as of yesterday probably advanced to 96% completed, while soy sowing was about 77% done.
Corn is the biggest US crop, valued at US$66.7 billion in 2010, followed by soy at US$38.9 billion, government figures showed.