Corn, soybeans sink on forecasts for rain

AP News
Posted: Jul 12, 2013 5:04 PM

Corn and soybean prices fell sharply Friday after forecasts for rain in U.S. growing regions.

Corn for December delivery fell 17.75 cents to $5.0925 a bushel. Soybeans also closed sharply lower. The November contract lost 33.5 cents to $12.5725 a bushel.

A midday forecast showing that rain was expected in grain and bean growing regions in the U.S. helped push prices lower, said Brandon Marshall, a commodity trader with Northstar Commodity in Minneapolis. Heat-stricken areas in Nebraska, Iowa, Missouri and Kansas were expected to get much-needed rain, according to the forecasts, Marshall said.

Rain could alleviate dry, hot conditions and lead to a larger crop, pushing prices lower as supplies increase.

A monthly crop report from the U.S. Department of Agriculture Thursday forecasting large fall crops of corn and soybeans also contributed to the decline, Marshall said.

Wheat for September delivery edged down 2 cents to $6.81 a bushel.

Metals prices mostly fell. August gold lost $2.30 to settle at $1,277.60 an ounce.

September silver fell 16.4 cents to $19.792 an ounce.

Copper for September delivery fell 2.25 cents to $3.155 a pound. October platinum fell 70 cents to $1,406.90 an ounce. September palladium edged up $4.70 to $722.90 an ounce.

Energy prices rose. Crude oil gained $1.04 to $105.95 a barrel in New York.

Wholesale gasoline futures rose 10 cents, or 3.2 percent, Friday to $3.12 a gallon, and have risen about 37 cents in July.

Natural gas added 3 cents to $3.64 per 1,000 cubic feet and heating oil advanced 3 cents to $3.03 a gallon.