Indiana Grain Company, LLC

Posted: 08/19/09

By: tomgrisafi

Corn and soybeans dropped on speculation that favorable weather will increase U.S. crop yields and after the dollar stemmed declines.

Warm temperatures and mostly adequate soil moisture favors developing corn and pod setting soybeans in the Midwest, Minneapolis-based DTN Meteorlogix LLC said yesterday in a report. The Dollar Index was little changed after declining 0.5 percent yesterday.

“The negative factors were good crop weather” and the dollar, Hiroyuki Kikukawa, general manager of research at IDO Securities Co., told Bloomberg News.

Corn for December delivery dropped 1 percent to $3.1925 a bushel in after-hours electronic trading on the Chicago Board of Trade at 1 p.m. in London, after earlier rising 0.7 percent.

Soybeans for November delivery fell as much as 1.9 percent to $9.405 a bushel and last traded at $9.4425.

The two commodities yesterday climbed for the first time in three days on concern that frost may damage U.S. crops, which are behind the normal development stage and more vulnerable to cold weather.

Wheat for December delivery in Chicago fell 0.4 percent to $4.965 a bushel.

Source: Bloomberg

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