June 29, 2010

CBOT corn, soy futures down as US dollar gains

Corn futures retreated a seventh day and soy declined as the dollar extended gains and crude oil dropped, reducing US crop appeal and eroding biofuel demand.

Corn for December delivery on the CBOT fell 0.4% to US$3.515 a bushel at 2:28 p.m. in Tokyo. It was the longest slide since mid-March. Soy for November delivery fell 0.2% to US$9.17 a bushel.

"The Chicago market was taking the lead from the dollar's strength and weaker oil prices," said Toshimitsu Kawanabe, an analyst at Tokyo-based commodity broker Central Shoji Co.

Corn has lost 2% in June and soy have fallen 2.2%, slumping for the second straight month. The euro declined to US$1.2262 from US$1.2277 in New York and crude oil fell 0.8% to US$77.60 a barrel.

Drier weather this week will aid most crops after recent rain, and cooler temperatures next week will help plants reproduce, Mike Tannura, president of T-Storm Weather LLC in Chicago said. Parts of the Midwest got more than nine inches (22 centimetres) of rain in the past two weeks, he said.

About 73% of the corn was in good or excellent condition as of June 27, down from 75% a week earlier, the USDA said in a report. An estimated 67% of soy was given the best ratings, down from 69%.