Corn futures dropped for a sixth day in Chicago, the longest losing stretch since March, on speculation drier weather in the U.S.’s Midwest will boost crop development in the country, the world’s largest corn exporter.
Corn for December delivery fell 0.9 percent to $3.5725 a bushel on the Chicago Board of Trade at 2:14 p.m. Paris time. The most-active corn contract has dropped 14 percent this year and is up 3.6 percent in the second quarter.
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 June 25 forecast. 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 0.2 percent to $9.1375 a bushel. The most-active soybean contract has declined 13 percent this year and is down 2.9 percent this quarter.
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 0.5 percent to $4.6875 a bushel in Chicago. The most-active contract has dropped 13 percent this year, and has gained 1 percent since the end of March.
Milling wheat for November delivery traded on NYSE Liffe in Paris rose 0.4 percent to 140 euros ($173.05) a metric ton.