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Wheat Caps Longest Slump Since November on Supplies

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May 15 (Bloomberg) -- Wheat fell in Chicago, capping the longest slump since November, and corn dropped to six-week low on speculation that global supplies will be ample even as dry weather erodes U.S. crops. Soybeans also declined.

World wheat stockpiles will rise 0.5 percent to 187.4 million metric tons by June 1, 2015, the U.S. Department of Agriculture said May 9. Corn reserves before the 2015 harvest are forecast to rise for a fourth straight year, the agency said. Combined grain supplies are projected to be the highest since 2001, USDA data show.

“The grain markets are reeling from the projection for rising global carryovers,” Tom Fritz, a partner at EFG Group LLC in Chicago, said in a telephone interview. “There’s plenty of grain supply.”

Wheat futures for July delivery fell 1.7 percent to close at $6.7825 a bushel at 1:15 p.m. on the Chicago Board of Trade after touching $6.7675, the lowest since April 23. The most-active contract fell for a seventh straight session, the longest slump since since Nov. 12.

Corn futures for July delivery fell 2.3 percent to $4.8425 a bushel in Chicago, the fourth drop in five sessions. Earlier, the grain touched $4.8175, the lowest since March 31.

Prices in South Africa fell to the lowest in 14 months as the United Nations said this year’s harvest will rise 9 percent to 13.63 million metric tons.

Farmers in France, Europe’s top grower, will expand soft-wheat planting by 0.7 percent from last year, FranceAgriMer said yesterday. About 73 percent of the French crop was rated in good or excellent as of May 5, FranceAgriMer said.

Drought retreated in the U.S. Midwest and Great Plains through May 13, according to the U.S. Drought Monitor. The government’s weather forecast for the next three months signals increased odds for above-trend corn and soybean yields this year, T-Storm Weather LLC said in a report today.

Soybean futures for July delivery fell 1.1 percent to $14.7025 a bushel.

To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net

To contact the editors responsible for this story: Millie Munshi at mmunshi@bloomberg.net Joe Richter, Steve Stroth