Corn dropped on concern demand from producers of ethanol is declining and makers of livestock feeds may seek cheaper substitutes. Wheat fell.
December-delivery corn lost 0.6 percent to $7.2025 a bushel on the Chicago Board of Trade at 2:10 p.m. Singapore time. The grain climbed 46 percent in the past year, beating a 3.4 percent decline in wheat.
Output of ethanol in the U.S. fell 1.9 percent to 879,000 barrels a day last week, the lowest level since the week ended July 29, according to a Department of Energy report. Feed millers will probably use less corn and more wheat in rations for livestock and poultry feeds, the Department of Agriculture said Sept. 12.
“The market has become increasingly focused on demand destruction in recent weeks,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, said in a report today. “Wheat feeding is expected to displace an increasing proportion of corn use.”
Global corn use in animal feed will drop to 505.1 million metric tons this season from 510 million tons estimated a month earlier, the USDA said Sept. 12.
Wheat for December delivery slipped 0.4 percent to $7.02 a bushel in Chicago. Soybeans for November delivery wa little changed at $13.8425 a bushel.
Exports of wheat from Australia, set to be the world’s second-biggest shipper, may be between 19 million to 19.5 million metric tons, missing the government forecast for a record 20.4 million tons in the year beginning Oct. 1, Paul Deane, an agricultural economist at Australia New Zealand Banking Group Ltd. said in an interview Sept. 14.