Corn Drops as U.S. Supply Outlook Improves Amid Weakening Demand

Corn declined for the first time in three days on a forecast for warmer weather in the Midwest, aiding crop growth amid signs demand has weakened for supplies from the U.S., the largest shipper. Soybeans and wheat fell.

The contract for delivery in December, after the U.S. harvest, lost as much as 0.6 percent to $5.4725 a bushel on the Chicago Board of Trade and was at $5.475 by 10:55 a.m. in Singapore. Futures gained 2.2 percent yesterday on concern that cool and wet weather in parts of the U.S. may slow crop development.

The Midwest, the largest growing region in the U.S., will turn drier and warmer through the weekend, favoring development of late planted crops, DTN said in a report yesterday. About 560.86 million bushels were inspected before shipment at U.S. ports as of June 13, down 56 percent from a year earlier that ended Aug. 31, the U.S. Department of Agriculture said June 17.

“The grain market is overvalued and out of line with the fundamentals,” Makiko Tsugata, an analyst at Market Risk Advisory Co. in Tokyo, wrote in an e-mail today, referring to declining U.S. exports. “This summer’s weather in the corn belt area is expected to be good for growth.”

Soybeans for delivery in November, after the U.S. harvest, slipped 0.2 percent to $12.8675 a bushel in Chicago, while wheat for September delivery lost 0.6 percent to $6.905 a bushel.

To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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