Corn futures declined the most in a week on the outlook for rising supplies in the U.S, the world’s largest grower and exporter. Wheat also fell.
U.S. reserves on Aug. 31, 2015, will reach 1.726 billion bushels, the most since 2006 and up from 1.146 billion forecast this year, the U.S. Department of Agriculture said today in a report. Analysts in a Bloomberg survey expected 1.641 billion. Production in the season that starts in September will climb to 13.935 billion bushels from a record 13.925 billion harvested a year earlier, the USDA said.
“The surprise is the larger increase in global corn supplies,” Dale Durchholz, the senior market adviser for AgriVisor LLC in Bloomington, Illinois, said in a telephone interview. “Rising reserves is never bullish.”
On the Chicago Board of Trade, corn futures for July delivery fell 1.7 percent to close at $5.075 a bushel at 1:15 p.m., the biggest loss since May 1.
Global reserves will climb 7.9 percent to 181.73 million metric tons, the fourth straight annual increase and the highest since 2000, USDA said.
World wheat inventories will rise 0.5 percent to 187.42 million tons in the marketing year that begins June. 1 from 186.53 million this year, the USDA said. World trade is forecast to fall 6.3 percent to 151.8 million, the agency said. While world wheat production is forecast to fall 2.4 percent to 697 million, use is estimated down 0.9 percent to 696.2 million.
“Globally, we are not in any sort of wheat issue,” Sterling Smith, a futures specialist at Citigroup Inc. in Chicago, said in a telephone interview. “Indian wheat production will be very, very high. That will come in and fill a lot of gaps.”
Wheat futures for July delivery fell 1.7 percent to $7.225 a bushel in Chicago, a third straight loss. Still, futures gained 0.9 percent this week and are up 19 percent this year as drought reduced crops in the U.S. Great Plains.
Soybean futures for July delivery gained 1.2 percent to $14.87 a bushel on the CBOT to cap the first weekly gain in three weeks.
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