Thursday, October 7, 2010

Chicago agricultural commodities creep down

The agricultural products on Wednesday crept down on Chicago Board of Trade, as investors expected that the supply is likely to further expand amid globally improved weather conditions.
The most active corn contract for December delivery declined 2. 5 cents, or 0.5 percent, to 4.885 U.S. dollars per bushel. December wheat inched down 5.25 cents, or 0.5 percent, to 6.5825 dollars per bushel. November soybean fell 9.75 cents, or one percent, to 10.62 dollars per bushel.
Traders credited the corn's weakness to a lack of fund support as well as the continued rapid pace of the U.S. corn harvest. Few investors were willing to take new positions before the USDA's report on export sales, which is scheduled to be released on Thursday.

Besides, dry weather and thus a rapid harvest pace are expected to continue through the weekend across the U.S. Midwest. About 37 percent of the crops were harvested as of Oct. 3, 16 percentage points more than the five-year average for corn, the Department of Agriculture said this week.

Even a weaker dollar and further hike in gold failed to support Wednesday's market. The corn market enjoyed two consecutive bulls before Wednesday.

The wheat market also weakened as investors expected that the planted area for soft red winter wheat is likely to expand this autumn and moisture levels are growing better across much of the hard red winter belt.

The soybean was shattered by the news that harvest advances in all major growing areas of the United States and that a dry outlook in Canada would speed up the late harvest of canola there. Editor: yan

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