Corn prices weaken on forecast for rise in U.S. sowings

viernes 1 de abril de 2016 06:51 GYT

* Strong export demand underpins EU wheat prices

* Low corn prices may curb rise in U.S. acreage

By Nigel Hunt

LONDON, April 1 (Reuters) - U.S. corn futures were lower on Friday, weighed down by a U.S. government forecast of 2016 planted acreage which was well above market expectations.

May corn on the Chicago Board of Trade was off 0.6 percent at $3.49-1/4 a bushel at 1136 GMT. The contract slid to a low of $3.47-1/2 on Thursday, the weakest level for the front month since early September 2015.

A U.S. Department of Agriculture report showed U.S. farmers are planning to boost corn seedings by 6.4 percent this year to 93.601 million acres (37.88 million hectares), which would be the third-highest level since 1944.

"The USDA estimate is more than what everyone expected," said Kaname Gokon at the Okato Shoji brokerage in Tokyo. "They are looking at corn acreage more than last year."

Some dealers, however, noted the USDA survey reflected farmer intentions in the first half of March and the recent decline in prices may have diminished their appetite to plant the crop.

"Some market participants believe that the corn acreage will ultimately turn out to be smaller than that forecast by the USDA yesterday," Commerzbank said in market note.   Continuación...