(Bloomberg) – Corn fell for a third day in Chicago and traded near the lowest in almost two weeks on signs cooler, wetter weather in parts of the U.S. will boost crop conditions for the world’s largest grower.
Temperatures that reached 96 degrees Fahrenheit (36 degrees Celsius) yesterday in the Midwest, the main corn and soybean region, will begin dropping tomorrow, and some areas may see“scattered light to locally moderate showers,” forecaster DTN said. Corn slumped 29 percent this year as U.S. output rebounds from last year’s drought-plagued harvest, with the Department of Agriculture forecasting a record crop of 13.95 billion bushels.
“The weather is driving this market and pressuring corn lower,” said Graydon Chong, a grains and oilseed analyst at Rabobank International in Sydney.
Corn for delivery in December slumped 0.8 percent to $4.9675 a bushel at 6:10 a.m. on the Chicago Board of Trade. The grain reached $4.94 yesterday, the lowest since July 8, and is set to drop 2.5 percent this week.
Sixty-six percent of corn crops in the main U.S. growing area were in good or excellent condition as of July 14, compared with just 31 percent getting the top ratings at the same time last year, when the Midwest suffered from drought, USDA data show. Corn traders in a Bloomberg News survey this week were the most bearish since December 2009, with 15 of 23 analysts expecting prices to fall next week.
Soybeans, Wheat
Soybeans for delivery in November increased 0.2 percent to $12.6775 a bushel, poised for a second weekly advance.
Wheat for delivery in September rose 0.3 percent to $6.625 a bushel, trimming this week’s decline to 2.7 percent. In Paris, milling wheat for delivery in November fell 0.1 percent to 194 euros ($255) a metric ton on NYSE Liffe.
Egypt, the world’s largest wheat importer, agreed to buy 300,000 tons of the grain in a tender yesterday, with supplies coming from Russia, Romania and Ukraine. China, set to become the second-biggest importer, may boost purchases from Australia by 67 percent to 2 million tons in the year started July 1, according to grain handler Emerald Group Australia Pty, after rain hurt local crops.
