Wheat futures fell the most in two weeks after the U.S. said record global output last year left ample inventories and will send prices lower into 2015. Corn was little changed, while soybeans rose.
Even as U.S. wheat planting declines 1.2 percent this year to 55.5 million acres, domestic prices will average $5.30 a bushel in the year beginning June 1, down at least 20 percent from $6.65 to $6.95 forecast in the current period, the U.S. Department of Agriculture Chief Economist Joseph Glauber said today. Futures were up 10 percent this month through yesterday on signs of increased demand for U.S. exports.
The new estimate signals “either weakening demand or building supplies,” Chad Henderson, president of Prime Agricultural Consultants Inc. in Brooksfield, Wisconsin, said in a telephone interview. “It’s definitely not positive news. Bull markets need to be fed every day.”
Wheat futures for May delivery slid 0.6 percent to $6.10 at 10:27 a.m. on the Chicago Board of Trade, heading for the biggest decline since Feb. 6 and the first since Feb. 12. Prices are down 18 percent from a year ago. The U.S. is the world’s largest exporter of the grain.
Soybean futures for May delivery gained 0.2 percent to $13.4525 a bushel in Chicago. Plantings are forecast to rise 3.9 percent to 79.5 million acres in 2014, while prices will drop to $9.65 a bushel from $11.95 to $13.45 a year earlier, Glauber said.
Corn futures for May delivery up less than 0.1 percent at $4.605 a bushel on the CBOT, after fluctuating between gains and losses. Plantings of the grain in the U.S., the world’s largest grower and exporter, will fall 3.6 percent to 92 million acres this year, Glauber said. Farmers will get $3.90 a bushel on average, down from $4.20 to $4.80 a year earlier, he said.
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