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“Chicago went down on Friday after the release of the US Department of Agriculture’s monthly supply-and-demand report. It was a bit bullish on the yield side and a bit bearish on the demand side. Demand came down and yields are getting smaller. America got some rain the last couple of days‚ which will stop the damage to crops and yields will not go lower in some areas‚” said Johan van Rensburg‚ commodities trader at Mooirivier Grain in Potchefstroom.
The US Department of Agriculture report on Friday morning stated a greater-than-expected cut in the agency's forecast for US corn production.
The near-dated August white maize contract was down R48 to R2‚703 a ton and the September white maize contract dropped R47.80 to R2‚723.20 a ton. The December white maize contract lost R52 to R2‚788 a ton.
The near-dated August yellow maize contract was down R26 to R2‚739 a ton‚ the September yellow maize contract lost R27.40 to R2‚756.60 a ton and the December yellow maize contract shed R50.00 at R2‚760.
The August wheat contract was down R51.00 at R3‚401 a ton‚ the September wheat contract shed R69 to R3‚416 a ton and the December wheat contract dipped R67.80 to R3‚424.20 a ton.
Meanwhile‚ US corn futures fell on Friday‚ pressured by disappointment among market participants that a government forecast for domestic corn inventories came in no lower than analysts had expected‚ Dow Jones Newswires reported. Chicago Board of Trade September corn futures settled down 18 1/4 cents‚ or 2.2%‚ at $8.00 a bushel.
Corn futures jumped at first when the US Department of Agriculture issued its monthly supply-and-demand report on Friday morning‚ including a greater-than-expected cut in the agency's forecast for US corn production. The USDA projected corn output of 10.779 billion bushels‚ down from its last forecast of 12.97 billion bushels.
But corn prices then began to fall on disappointment over the USDA's forecast for domestic corn inventories‚ which the USDA projected at the end of the 2012-13 marketing year will be 650 million bushels‚ in line with predictions by analysts. Analysts said that forecast made the report neutral for corn overall‚ instead of price-supportive.
CBOT September wheat fell 27 3/4 cents‚ or 3.0%‚ to US$8.85 1/4 a bushel. August soybeans‚ thinly traded ahead of the contract's Tuesday expiration‚ rose 15 cents‚ or 0.9%‚ to $17.09 1/2 a bushel.
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