Commodity Blog

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Agricultural Commodities Drop in Uncertainty

April 27, 2011 at 14:43 by Andriy Moraru

Corn, soybean and wheat are experiencing considerable daily losses now, as a result of decrease in the speculative demand before the Fed meeting, which may put an end to the inflow of the cheap borrowing to the market’s biggest bulls.

Despite the adverse weather conditions (abundance of precipitation) in the growing regions of the US, corn is down for the first day in five. Market participants consider this soft commodity a rather dangerous bet today as it’s already risen quite far up, while the “money pipe” could be turned off by the FOMC meeting today. The US monetary policy statement will be released at 18:15 GMT today.

While droughts in some winter-wheat growing areas may curb the supply, Canadian farmers are reporting increased planting of this important cereal grain. Meanwhile, the monetary policy uncertainty is definitely pressing on the wheat prices, pushing them almost 2 percent down today on CBoT.

Soybean started to drop yesterday and now continues its bearish trend, reaching weakest level since April 21 during this trading session.

Corn futures for July delivery went down from $766.50 to $762.75 per 100 bushels as of 14:37 GMT on CBoT today. Soybean fell from $1,382.25 to $1,368.50, while wheat declined from $811.00 to $794.00 per 100 bushels.

If you have any questions and comments on the commodities today, use the form below to reply.

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