Corn Falls to 13-Week Low on Outlook for Record U.S. Crop
Category: Grains
(Businessweek) – Corn futures fell to a 13-week low on mounting speculation that output will rise to an all-time high in the U.S., the world’s top producer. Wheat dropped, extending the longest slump in 15 years.
U.S. farmers planted 95 percent of the corn crop as of June 1 with 76 percent of plants in good or excellent condition, the highest for this time of year since 2010, the government said yesterday. A favorable mix of rain and warm temperatures was forecast for the next two weeks, according to World Weather Inc. in Overland Park, Kansas.
“Corn is off to strong start, and that is increasing the potential for a record crop,” Greg Grow, the director of agribusiness for Archer Financial Services Inc. in Chicago, said in a telephone interview. “The forecast signals adequate moisture for continued strong early development.”
Corn futures for July delivery fell 1.6 percent to close at $4.5825 a bushel at 1:15 p.m. on the Chicago Board of Trade. Earlier, the price touched $4.56, the lowest for a most-active contract since Feb. 28. Last month, the grain tumbled 10 percent, the most in a year, as planting accelerated after fieldwork was delayed by rain and cold.
The U.S., the top exporter, may produce a record 353.97 million metric tons, the government said on May 9.
Wheat futures for July delivery dropped 1.3 percent to $6.125 a bushel. Earlier, the price touched $6.11, the lowest since Feb. 28. The grain declined for a 10th straight session, the longest slump since September 1998.
The Ukraine agriculture ministry has said that the industry has been unaffected by turmoil in the region. China’s imports in the 12 months that began June 1 may tumble 57 percent to 3 million tons, the U.S. Department of Agriculture forecast.
Rice futures for July delivery tumbled 2.1 percent to $14.55 per 100 pounds, the biggest drop since Aug. 7. Earlier, the price touched $14.545, the lowest since March 19, 2013.
Soybean futures for delivery in July declined 1.3 percent to $14.8125 a bushel.
