Corn and wheat fell for the first time in three days on speculation that ample world grain supplies will erode demand for exports from the U.S., the world’s largest shipper. Soybeans also declined.
Farmers in the U.S., the largest corn grower, will harvest a record 13.763 billion bushels, up 28 percent from a 2012 crop damaged by drought, the U.S. Department of Agriculture said on Aug. 12. While domestic output was forecast to rise less than analysts predicted, global production will jump 11 percent and exceed demand, according to the USDA. The world will collect a record 705.38 million metric tons of wheat, the agency said.
“World supplies are more than adequate this year with the big U.S. crops adding to the surplus,” Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis, said in a telephone interview. “Export competition will increase for U.S. grain.”
Corn futures for December delivery fell 1.9 percent to close at $4.635 a bushel at 1:15 p.m. on the Chicago Board of Trade. Prices are down 34 percent this year after touching a 35-month low of $4.4575 on Aug. 13. For the week, the grain rose 2.3 percent, halting a four-week slide, after the USDA trimmed its forecast of a record crop for a third straight month.
Wheat futures for December delivery fell 0.9 percent to $6.435 a bushel in Chicago, capping a second straight weekly decline. The most-active contract dropped 17 percent this year.
Warmer weather in the Midwest will increase development of crops that are maturing at a slower-than-average pace, Schultz said. Some of the weather models point to more rain in dry areas of the western Midwest late next week, boosting yield potential, he said.
Areas of southeast Nebraska, northwest Missouri and northeast Kansas saw some rain yesterday, according to a DTN report today. The forecast for the Midwest is warmer and dry through at least Aug. 21, the forecaster said.
Soybean futures for November delivery fell 0.5 percent to $12.5925 a bushel on the CBOT. For the week, the most-active contract gained 6.5 percent, after the USDA on Aug. 12 cut its forecast of the domestic crop by more than analysts forecast.