Corn Falls to Three-Week Low on Slowing U.S. Exports; Soy Drops
Corn fell to a three-week low on signs of slowing overseas demand for supplies from the U.S., the world’s biggest exporter. Soybeans rose, erasing an earlier decline.
Sales of corn for delivery before Aug. 31 totaled 12.23 million metric tons as of Nov. 29, down 46 percent from a year earlier, U.S. Department of Agriculture data show. Premiums paid for deliveries near New Orleans last week fell the most in three months. Brazil, the No. 3 exporter, shipped a record 3.66 million metric tons to overseas buyers in October, more than double a year earlier, government data showed Dec. 4.
“Corn is falling because of slowing U.S. exports,” Greg Grow, the director of agribusiness for Archer Financial Services Inc. in Chicago, said in a telephone interview. “Buyers are looking to alternative supplies outside the U.S.”
Corn futures for March delivery dropped 1 percent to close at $7.30 a bushel at 2 p.m. on the Chicago Board of Trade, after reaching $7.2525, the lowest for a most-active contract since Nov. 16. The grain has fallen 14 percent from a record $8.49 in August.
Soybean futures for January delivery gained 0.2 percent to $14.7475 a bushel in Chicago, the fifth gain in six sessions. Prices reached a record $17.89 on Sept. 4 as drought reduced U.S. production.
Rain expected over the next two weeks will improve soil moisture for developing crops in Brazil, World Weather Inc. said in a report today. In Argentina, dry weather that is forecast during the next five days may firm muddy soils to support farm equipment and accelerate planting. Brazil and Argentina are the two biggest exporters after the U.S.
“Good weather in South America has slowed buying interest,” Grow said. “Brazil is off to a generally good start, and Argentina farmers should make some progress to finish up planting.”
Corn is the biggest U.S. crop, followed by soybeans, hay and wheat.
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