Corn futures fell, capping a second weekly loss, on expectations for higher global output as U.S. farmers prepare to plant a record crop amid forecasts for drier weather in the Midwest. Wheat slid, while soybeans rose.
World corn production will jump 10 percent in the 2013-2014 season on increased sowing and better yields, rising to 939 million metric tons from 851 million, the International Grains Council said yesterday. U.S. planting should increase in the next five days as warm, dry weather firms muddy soils for farm machinery, Global Weather Monitoring said in a report today.
“There’s expectations of significant improvement in carryout stocks going into the new crop for corn,” said Brett Cooper, senior manager markets at FCStone Australia Pty. “We’re looking at a significant rebuilding of U.S. stocks.”
Corn futures for July delivery dropped 0.8 percent to close at $6.1975 a bushel at 1:15 p.m. on the Chicago Board of Trade. Prices fell 2.1 percent this week, capping a two-week decline of 3.4 percent. The most-active contract touched $6.10 on April 24, the lowest since June 26.
Global stockpiles will rise to 143 million tons at the end of the next season from 117 million a year earlier, the London-based IGC forecast.
“Rising global supply forecasts continue to deter speculative-buying interest,” Brian Grete, the senior market analyst for the Professional Farmers of America newsletter in Cedar Falls, Iowa, said in a telephone interview.
Wheat futures for July delivery fell 1.6 percent to $6.925 a bushel in Chicago, capping a 2.7 percent retreat this week.
Soybean futures climbed 0.6 percent to $13.81 a bushel on the CBOT, trimming this week’s decline to 0.1 percent.