Corn futures dropped for an eighth session, touching the lowest price since October 2010, as mild weather improved prospects for a record crop in the U.S., the world’s largest exporter. Wheat and soybeans also fell.
Farmers seeded 97.4 million acres (39.4 million hectares) of corn, the U.S. Department of Agriculture said June 28. That is the most since 1936 and exceeded the 95.431 million that analysts expected in a Bloomberg survey. Temperatures in the Midwest, the biggest growing area, will be lower than normal over the next five days, minimizing the risk of yield losses from excessive heat, according to DTN.
“There’s no heat in the extended forecast, so the weather is no real threat to anybody,” Mark Schultz, the chief analyst at Northstar Commodity Investment Co. in Minneapolis, said in a telephone interview. “The fact that we have 97 million acres of corn was a shock to everybody.”
Corn futures for December delivery fell 0.7 percent to $5.0725 a bushel at 9:59 a.m. on the Chicago Board of Trade, after touching $5.0375, the lowest for a most-active contract since Oct. 8, 2010. Prices have slumped 11 percent over eight sessions, the longest losing streak since February.
The USDA on June 12 forecast a record harvest this year of 14.005 billion bushels, up 30 percent from last year’s drought-damaged crop.
Wheat futures for September delivery fell 0.4 percent to $6.5525 a bushel in Chicago, heading for an eighth straight decline, the longest since June 2005. U.S. exporters shipped 1.48 million metric tons from June 1 through June 20, down 15 percent from the same period a year earlier, USDA data show.
“We’re not sparking interest” from overseas buyers, Schultz said. “There’s no export business being done.”
Soybean futures for November delivery slid 0.5 percent to $12.46 a bushel on the CBOT, after touching $12.38, the lowest for a most-active contract since February 2012.