Corn, Soybeans to Start September Lower

The U.S. Department of Agriculture has pegged domestic corn and soybean harvests above expectations this year, Reuters reports.

Meanwhile dryness in the United States southern plains area, ahead of the planting of next season’s winter wheat helped support prices. “Some of it just ran out of gas”. The Midwest had the fourth-wettest June since 1895, threatening to erode the benefits of crops from Missouri to Ohio that were planted early.

“U.S. and French wheat have not been very competitive for export, that is the main factor pressuring the market”, one European trader said.

CBOT September corn fell 4 1/4 cents, or 1.2%, to $3.59 1/2 a bushel.

Oil prices have been rallying on the prospect of supply restriction agreements between the oil cartel Opec and key non-Opec exporters.

The Chicago Board of Trade’s most-active soybean contract fell 0.5 percent to $8.83-1/2 a bushel by 1059 GMT, having closed higher in the previous three sessions. For the plants, its like trying “to drink through a clogged straw”, she said.

The USDA reports a slight drop in the condition of the American corn crop over the past week.

“I have prepared an information sheet, Estimating 2014 Corn and Soybean ARC-CO Payments, which looks at estimating the likelihood of 2014 ARC-CO payments for corn and soybeans at various 2014 market year average (MYA) price levels, and various county 2014 NASS yield levels, expressed as a “% of BM Yield”. Marketing adviser Pro Farmer said August. 21 that output would fall 2.7 percent to 13.323 billion, partly based on samples from 1,400 fields from Ohio to South Dakota. Monday, the USDA reported 125,000 tonnes of soybeans to an unknown destination. His company is an advisory service and commodity brokerage. All farm program payments for the 2014 crop year will be paid after October. 1, 2015.

“If it wasn’t for ethanol demand we’d have a $2 in front of corn prices”, said Mr. Kleist, adding that while China is not a large buyer of USA corn, if the Asian nation slows imports from other world producers, it could depress prices globally.

“The last two to three weeks of dry weather and increased disease took the top end off an already reduced crop”, DuPont Pioneer’s Bassett said.