US corn and soybeans futures got mixed results Friday. Nearby contracts increased due to lower supplies. New crop futures, such as the November soybean and December corn contracts that represent crops to be harvested in autumn, dropped. They were pressured by improved crop conditions for developing crops in the US Farm Belt. Corn for December delivery dropped to its lowest level in 2 and half years for the contract.
Soybeans and corn are following the same strategy, according to analysts. It is like looking at two markets in one. Tight supplies has supported near term contracts. Ideal weather for developing crops has affected contracts for delivery later this year.
Soybean and corn supplies have been tight since last year because of the historic drought that the nation has experienced. Cash markets for the two crops are strong due to the high demand on low supplies. The factors have supported soybean and corn futures for months.
New crop futures fell as investors continue to speculate on the high supply for US corn and soybean in the later part of 2013. For the next five days, the National Weather Service expects rainfall from a quarter inch to two inches in majority of the Corn Belt. Southeastern Minnesota to Ohio will experience the heaviest rains.
The NWS released its six to 10 day and 8 to 14 day predictions that showed above average changes of rain in most of the Corn Belt. Minnesota, northern Illinois and northeastern Iowa have average chances of rain. Temperatures are predicted to be below average.
Chicago Board of Trade corn for July delivery ended up 6 1/2 cents at $6.84 3/4 per bushel. The December delivery fell 11 1/2 cents at $4.91 1/4 per bushel. CBOT soybeans for July delivery closed up 4 1/2 cents at $15.88. Soybean for November contract dropped 22 1/2 cents at $12.28 1/4.