Beneficial rains send corn, soybean prices downCorn and soybean futures fell on Monday following news that beneficial rains could boost crop yields in Argentina and Brazil.

The prices of nearly all commodities have surged over the past few years, as flourishing demand from throughout the world – particularly emerging economies such as Brazil, Russia, India and China – outstripped supplies. U.S. companies have struggled amid a weak economy to offset price gains onto consumers, and have launched business cost reduction initiatives and other campaigns as they sought to rein in spending.

While commodity prices have remained largely stagnant over the past few months, corn and soybean futures fell in trading on Monday. Bloomberg reports that corn dropped for the first time in eight sessions and soybean futures suffered their biggest decline in four months on speculation that rains in South America will help fuel crop yields, allaying supply concerns.

Approximately 90 percent of the fields in Argentina and Brazil will get as much as three inches of rain over the course of the next 10 days, according to a report from Global Weather Monitoring. The rains are expected to help fuel crop yields of both corn and soybeans.

"Rainfall will be beneficial for boosting yields," Prime Agricultural Consultants market analysts Chad Henderson said in an interview. "The rains should halt any further deterioration in yields and slow buying of U.S. grains."

Businesses that use corn and soybeans have witnessed profits dwindle as prices have surged over the past few years. Some food manufacturers and other companies have had to cut spend management and indirect spend, while others have worked with procurement consultants and overhauled supply chain management as they endeavored to improve squeezed profit margins.

Farmers, on the other hand, have seen revenue and profits jump. The beneficial rains in South America could increase supplies, though, which would ease demand on producers of the commodities.

On the Chicago Board of Trade on Monday, corn futures for March delivery fell 1.56 percent to close at $6.31 per bushel. Soybeans for March delivery declined 2.77 percent to close at $11.85 per bushel.

Share To:

Strategic Sourceror

Post A Comment:

1 comments so far,Add yours

  1. Depite some relief, we feel dry weather has actually affected the total production in Argentina and