(Businessweek) – Corn slumped by the most in almost a month on forecasts that parts of the U.S. will turn drier after excessive rains, helping farmers in the world’s largest producer accelerate planting and rebuild global inventories.
Corn for delivery in July lost as much as 2.5 percent to $6.445 a bushel on the Chicago Board of Trade, the biggest intraday loss for the most-active contract since April 10. Futures traded at $6.505, down 1.6 percent at 10:12 a.m. in Singapore on volume that was more than double the 100-day average for that time of day. Prices climbed 6.7 percent last week on concern snow and rain will slow the pace of planting.
The northern U.S. plains will be dry early this week, favoring planting, while rains will dissipate in the western and eastern parts of the Midwest Corn Belt today, Accuweather.com said in a report dated May 3. World inventories of corn willprobably rise to 150.9 million metric tons before the 2014 Northern Hemisphere harvests, from a forecast 125.9 million tons this year, according to the average of as many as 17 analyst estimates surveyed by Bloomberg News.
“There’s been substantial concern if corn will get planted at all,” Michael Pitts, a commodity sales director at National Australia Bank Ltd. said by phone from Sydney today. “Obviously, the dry weather after a lot of rain should be beneficial.”
In the U.S., reserves may total 2.038 billion bushels before the 2014 harvests, up from a forecast 762 million bushels this year, as production recovers after the worst drought in seven decades, according to the average of 31 analyst estimates in a separate Bloomberg News survey.
The U.S. Department of Agriculture is scheduled to release on May 10 its U.S. and world supply and demand outlook for corn, soybeans and wheat for this year and 2013-2014.
Soybeans for July delivery lost as much as 0.6 percent to $13.79 a bushel in Chicago, before trading at $13.86. Wheat lost 1 percent to $7.135 a bushel.
