(Bloomberg) – Corn traded near a 12-week low, poised to end four months of gains, as U.S. planting neared completion and prospects improved for early crop development. Wheat headed for the first increase in seven sessions.
Farmers had planted 88 percent of corn in main U.S. growing areas as of May 25, matching the previous five-year average, the U.S. Department of Agriculture said. Domestic production may climb to a record 353.97 million metric tons in 2014-15, the USDA estimates. While northern areas still face planting delays amid wet weather, Midwest conditions are “mostly favorable,” DTN said. Western areas of the Midwest may see showers starting this weekend, with rain moving east early next week, DTN said.
“Rain makes grain” Matt Ammermann, a risk management consultant at INTL FCStone Inc., said in an e-mailed note today. “The extended forecast continues to call for this as well, which speaks well for yield potential. Plantings should be nearly finished and trader focus will be on conditions and weather forecasts.”
Corn for July delivery fell 0.5 percent to $4.7025 a bushel at 6:54 a.m. on the Chicago Board of Trade. Prices dropped to $4.665 yesterday, the lowest since March 4, before rebounding to settle 0.6 percent higher. Futures are down 1.6 percent this week and are set to decline 9.4 percent in May, the biggest monthly decline since June, after surging 23 percent in the previous four months.
Soybeans for July delivery rose 0.4 percent to $15.04 a bushel, trimming a first monthly loss since January. Fifty-nine percent of U.S. crops were planted as of May 25, ahead of the average pace, USDA data show. The U.S. sold 110,000 tons of the oilseed to China for delivery after Sept. 1, according to a daily sales report announced by the USDA yesterday.
Crop Conditions
Wheat for July delivery advanced 0.7 percent to $6.435 a bushel, after sliding 5.3 percent in the prior six sessions. U.S. winter wheat crop conditions improved in the week ended May 25, with 30 percent rated good or excellent from 29 percent a week earlier, the USDA said. Growing areas in the U.S. Great Plains are suffering from drought.
In Paris, milling wheat for November delivery rose 0.6 percent to 193.75 euros ($263.75), trimming a third weekly drop on Euronext.
