Corn futures fell to cap the biggest monthly decline since September 2011 on speculation that supplies will be ample with a bumper harvest forecast in the U.S., the world’s top grower.
Crops are maturing in mostly good condition, boosting prospects that output may reach the U.S. Department of Agriculture’s forecast of 13.86 billion bushels, the second-highest ever. Rain will increase in August after dryness developed in some areas late this month, WeatherBell Analytics LLC in New York said.
“The weather is perfect in the growing areas of the U.S. Midwest, meaning that high yields are anticipated,” Carsten Fritsch, an analyst at Commerzbank AG, said in a report. “What is more, rainfall is forecast for the next few days, which should dispel any fears that crop yields might be impaired by overly dry conditions.”
Corn futures for December delivery fell 1.2 percent to close at $3.67 a bushel at 1:15 p.m. on the Chicago Board of Trade. This month, the price tumbled 14 percent, touching a four-year low of $3.6425 on July 24.
Wheat futures for September delivery rose 0.6 percent to $5.3025 a bushel. In July, the price dropped 8.2 percent, the third straight monthly decline.
Egypt, the top importer, bought 175,000 tons of Russian grain yesterday, shunning U.S. supplies. No offers were submitted for supplies from France, according to two traders involved who asked not to be identified because they’re not authorized to speak to media.
French soft-wheat exports may fall after cooperatives reported that rain eroded grain quality in the east and north.
The U.S. was the top shipper last year, followed by Australia, Canada, France and Russia, according to the International Grains Council and the EU’s Eurostat.
Soybean futures for November delivery rose 0.1 percent to $10.82 a bushel. In July, the price dropped 6.5 percent. The third straight monthly drop marked the longest slump since April 2013.