Corn futures dropped, extending declines to the lowest since October 2010, as cool, wet weather in the U.S. Midwest will boost yields, and on the government’s forecast of a record harvest. Soybeans and wheat fell.
Rainfall in the next 10 days will be above normal in parts of Nebraska, Kansas and Missouri, Commodity Weather Group said in a report today. Cool weather also will prevent heat stress on plants, forecaster DTN said. The U.S. Department of Agriculture said July 11 that farmers will boost output by 29 percent this year to a record 13.95 billion bushels.
“It’s ideal temperatures and plentiful rainfall,” Larry Glenn, an analyst at Frontier Ag in Quinter, Kansas, said in a telephone interview. “You can’t find a reason to be a buyer. Anytime we get a bounce up, people are going to sell and the price is going to back off again.”
Corn futures for December delivery fell 2.5 percent to settle at $4.67 a bushel at 1:15 p.m. on the Chicago Board of Trade, after reaching $4.64, the lowest for a most-active contract since Oct. 4, 2010. The contract has retreated 22 percent this year.
Soybean futures for November delivery slid 1.1 percent to $11.925 a bushel in Chicago, after touching $11.89, the lowest for the most-active contract since Jan. 31, 2012.
Wheat futures for September delivery lost 0.9 percent to $6.58 a bushel on the CBOT, the first decline in five sessions.