AP: Commodities: Grain prices fall ahead of crop report
NEW YORK — Grain prices fell Tuesday, before the U.S. Department of Agriculture report to be released today that will revise production estimates for U.S. and foreign farmers.
"It's pre-crop report jitters," said Richard Feltes, senior vice president and director of commodity research at MF Global.
Feltes predicted USDA will say that more soybeans and corn were produced in the Southern Hemisphere than previously forecast. Additional supply hurts prices in the futures market.
The report will also give an update on U.S. production from 2009 plantings. The USDA does not typically update previous year's output this late, which has created some volatility.
May soybeans fell half a cent to $9.475 a bushel. Corn for May delivery dropped 6 cents to $6.69 a bushel, while wheat fell 5.5 cents to $4.895 a bushel.
Sugar also continued its rapid fall. Sugar prices hit nearly 30-year highs in late January. May sugar fell 1.25 cents to 20.32 cents per pound.
As the dollar weakened Tuesday, metals and energy contracts rebounded. April gold fell $1.70 to $1,122.30 an ounce, while silver for May delivery rose 6.6 cents to $17.338 an ounce. May copper rose less than a penny to $3.4115 a pound.
Benchmark crude for April delivery dipped 38 cents to$81.498 a barrel. Heating oil slipped 1.57 cents to $2.0898 a gallon, and gasoline fell 2.89 cents to $2.2603 a gallon. Natural gas fell 1.1 cents to $4.516 per 1,000 cubic feet.