Corn futures led
wheat higher, as some concerns about US planting weather encouraged
Markets are also poised for tomorrow's world agriculture
supply and demand estimates from the US Department of Agriculture.
This report will probably prove to be less important for sentiment
than last month's US planting and stocks estimates, but with investors heavily
short in cereals, there is room for some short covering.
Rains could stall
Concerns are growing about possible delays to corn
"Rain showers will favour the central Midwest, northwestern
Delta, and southeastern Plains today and will favour the far southeastern
Midwest and Delta tomorrow," said Kyle Tapley at MDA Weather Services.
"Showers will develop across the Plains on Wednesday and
will spread across the western Midwest on Thursday and Friday," Mr Tapley said.
Although the showers across the central US will be good for
winter wheat prospects, it threatens to slow corn planting.
"Wetter weather is expected across the Midwest next week,
which will further improve soil moisture levels, but stall corn planting," Mr
"Corn is trading firmer as wet weather in the central US threatens
to delay start to US corn planting," said Kim Rugel, at Benson Quinn Commodities.
"With USDA reducing potential planted acres year-on-year,
any delays to planting could further lower acreage intentions," Ms Rugel said.
"The planting forecast looks
unfavorable this week in the Midwest to get the corn crop planted," said CHS
"Rain and even snow forecasted in
inspections, new sales
Corn markets also got some support from US corn exports,
with weekly inspections reported at a respectable 1.17m tonnes.
And the US Department of Agriculture reported flash sale of
101,000 tonnes of corn to an unknown destination was announced this morning for
the 2016-17 marketing year.
May corn futures finished up 2.1%, at $3.67 a bushel.
also rose on short-covering, with May Chicago futures up 1.1% on the day, finishing
at $4.28 ¾ a bushel.
Ran support for soybeans
got some early support from the unwanted weekend rains in Argentina.
But the fact is these rains were no more widespread than
forecast, and weather is now expected to turn drier.
"Rains favoured most of the major growing areas in Argentina
over the weekend… stalling corn and soybean harvesting," said Mr Tapley.
"Rain will linger in southern Santa Fe, Entre Rios, and
Buenos Aires today, but dry weather is expected otherwise this week."
"The drier weather should ease wetness and allow corn and
soybean harvesting to get back on track," Mr Tapley said. "Mostly dry weather
should continue across the major growing areas next week."
And extra pressure on soybeans came from the tumbling palm
oil markets, thanks to bigger-than-expected Malaysians stocks.
May soybean futures finished flat on the day, at $9.41 ¼ a
Cocoa prices slump
The sell-off in cocoa markets continue, as the size of the forecast
global cocoa production surplus is re-asserting itself after a stalled rally.
"The expectation of record-high global supply in 2016-17 is
continuing to pressure prices, though there have been no new concrete figures
to support this," said Commerzbank.
July New York cocoa settled down 2.1%, at $1,964 a tonne.
Coffee market eases
Coffee futures came under pressure, as Rabobank lifted its estimate
of the production in the current year, by 2.3m bags, to 154.0m bags.
Rabobank lowered its forecast for 2017-18 by 2.4m bags, to 153.0m
But the bank warned of a potentially "monstrous" crop from
Brazil in 2018-19, thanks
coffee settled down 0.1%, at 139.85 cents a pound.
May robusta fell 0.7%,
to settle at $2,154 a tonne.