July 23 (Bloomberg) -- Corn fell, capping the first weekly drop this month, on speculation that rain and mild temperatures in the next two weeks will improve crop development in the U.S., the world’s biggest exporter.
Precipitation in parts of the eastern Midwest and South will relieve dry areas, said Allen Motew, a meteorologist at QT Weather in Chicago. The National Weather Service’s 30-day outlook for next month does not show any sustained hot, dry conditions, Motew said.
“The forecasts look very favorable for big crops this year,” said Alan Kluis, the president of Northland Commodities LLC in Minneapolis. “The market appears to have made a pre-harvest top this week.”
Corn futures for December delivery fell 5.75 cents, or 1.5 percent, to $3.845 a bushel on the Chicago Board of Trade. Most-active contract fell 5.6 percent this week, snapping a three-week rally of 13 percent.
Corn is the biggest U.S. crop, valued at $48.6 billion in 2009, government figures show.
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