Big difference between old and new crop corn prices this past week. While spot corn prices were up nearly $.10 bu., new crop Dec-12 corn was down $.14 ½. Strong cash basis was the principal driver of old crop corn, while favorable weather, rapid plantings and higher corn production forecasts from South America all contributed to lower prices for new crop corn.
The story in the soybean market was the exact opposite. Spot soybean prices were down just over $.20 for the week, while new crop Nov-12 futures were up nearly $.05. Speculative liquidation selling pressured old crop soybean prices, while lower production estimates from South America and strong exports provided the boost the new crop prices.
Across the board, Chicago wheat prices were under pressure. July-12 futures traded down to new contract lows, and below the $6.00 level, finishing the week down just over $.40 per bu. at $6.09 ½. Expectations for a large U.S. winter wheat crop, and higher spring wheat acre’s were the driving force for this week’s lower prices.
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