Friday, July 16, 2010

Corn, Soybeans, Wheat, Oats Up on Expected Midwest Rains

Weather has given and now weather is taking away, the price of the major grains in the U.S., as hot and dry weather in the western and eastern parts of the Midwest had traders pushing up the prices on concerns over a smaller harvest for corn, soybeans, wheat an oats.

That has changed now as longer term contracts dropped on news the majority of the Midwest should receive up to 3 inches of rain over the next week, essentially eliminating the potential for damage.

Approximately 90 percent of the fields north of Omaha, Nebraska and Columbus, Ohio are expected to receive the rain.

Soybean delivery for November dropped 2.75 cents, or 0.3 percent, to $9.8525 a bushel, while corn futures for December delivery declined 1 cent, or 0.2 percent, 50 $4.0425 a bushel early in the Friday trading session on the Chicago Board of Trade.

Since the end of June, corn futures have gained 18 percent on revised production, weather concerns and demand from China and ethanol producers.

Wheat had also been going higher because of the possibility it would have to be used as a supplement for animal feed if corn faltered.

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