Corn futures slumped in Chicago for a sixth day, the longest losing streak since March, on speculation drier weather in the Midwest will boost crop development in the U.S., the world’s largest exporter.
Corn for December delivery declined as much as 1.4 percent to $3.555 a bushel on the Chicago Board of Trade and was at $3.5825 at 10:02 a.m. Singapore time.
The Midwest will have drier, warmer weather this week, bringing more relief to crops after excessive rain earlier this month, Accuweather.com said in a forecast on June 25. The Midwest is the largest U.S. corn and soybean growing region.
“The weather at the moment has been fantastic,” Peter McGuire, managing director of CWA Global Markets Pty. said by phone from Sydney. “The Midwest weather forecast will support the development of U.S. crops.”
Soybeans for November delivery advanced for the first time in five sessions, gaining as much as 0.4 percent to $9.155 a bushel, before trading at $9.15 a bushel.
La Nina may hurt soybean crops in the U.S., the largest exporter, and South America, if it causes a severe drought between early August and February, Bryce Anderson, agricultural meteorologist at Telvent DTN Inc., said June 25. It may be too early to predict exactly when the weather phenomenon will arrive and how strong it will be, he said.
La Nina, characterized by colder-than-normal sea-surface temperatures in the Pacific Ocean, may cause wetter-than-usual weather in Asia and below-average rainfall in parts of the U.S., Argentina and south Brazil, potentially damaging crops.
There’s a high probability of La Nina developing during India’s June-to-September monsoon season, the India Meteorological Department office said June 25.
The market will be monitoring the impact of La Nina on global soybean production, particularly in the U.S., Brazil and Argentina, the three biggest soybean exporters, McGuire said. “When you’re dealing with Mother Nature, you’ve always got those issues, as far as the weather is concerned,” he said.
Wheat for September delivery lost as much as 1.1 percent to $4.6575 a bushel, before trading at $4.68.