Corn Drops on U.S. Warm Weather; Wheat Falls; Soy Unchanged
Corn fell for a third straight session on speculation that hot weather is improving conditions of newly planted crops in the U.S., the world’s largest grower and exporter. Wheat also declined, while soybeans were unchanged.
Temperatures this week in the Midwest will top 90 degrees Fahrenheit (32 Celsius), aiding crop growth, Commodity Weather Group said. The U.S. Department of Agriculture rated 64 percent of the corn and soybean crops in good or excellent condition as of June 16, and an updated report today probably will show improvements in the past week, said Dewey Strickler, the president of Ag Watch Market Advisers.
“As long as it doesn’t get too warm, that’ll be good for” both crops, Strickler said by telephone from Franklin, Kentucky. “Corn and beans are looking pretty good right now.”
Corn futures for December delivery, after the harvest, fell 1.8 percent to settle at $5.465 a bushel at 1:15 p.m. on the Chicago Board of Trade. The price last week gained 4.4 percent, the first increase in three.
Wheat futures for September delivery declined 2.4 percent to $6.8775 a bushel in Chicago, sliding for a third straight session.
Prices are falling amid concern that a cash crunch in China will curb economic growth and commodities demand. China’s central bank has urged banks to control risks from credit expansion, signaling no relief from the cash squeeze.
Soybean futures for November delivery were unchanged at $12.735 a bushel in Chicago, after dropping as much as 1.5 percent.
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