Corn futures fell for the first time in four sessions on speculation growers in the U.S., the world’s biggest shipper of the grain, will increase production 15 percent to a record. Wheat also declined.
U.S. corn production may jump to 14.27 billion bushels in 2012-13, the most ever, as seedings increase to 94 million acres, the most since 1944, the Department of Agriculture said in a report on Feb. 24. Yields may average 164 bushels an acre, the USDA said. About 4.95 billion bushels will be used to make ethanol, the fewest in three years, according to the report.
“Those are egregiously bearish numbers,” economist Dennis Gartman said in his daily Gartman Letter. “Nonetheless, corn futures have held quite well following that bearish news.”
Corn for May delivery fell 0.8 percent to $6.3875 a bushel by 1:38 p.m. London time on the Chicago Board of Trade. The price last week gained 2.1 percent.
Stockpiles of corn in the U.S., the world’s largest grower and exporter, may double to 1.62 billion bushels in the 2012-13 marketing year from 801 million bushels in the prior year, as demand from ethanol producers slows, the USDA said.
Wheat for May delivery fell 0.7 percent to $6.37 a bushel in Chicago. Milling wheat for May delivery declined 0.4 percent to 200.75 euros ($268.76) a metric ton on NYSE Liffe in Paris.
Inventories of wheat in the U.S., the largest shipper, will climb to 957 million bushels from 845 million bushels a year earlier as production rises, the USDA said.
Soybeans for May delivery were little changed at $12.8625 a bushel in Chicago, after the price earlier today reached a five-month high. A decline today would be the first in six sessions.