Corn Extends Longest Losing Streak in Four Months on U.S. Supply
Corn declined for a seventh day, the longest losing streak since February, as warm weather and soil moisture boost the yield outlook in the U.S., the largest grower and exporter, even as acreage is expected to decline.
Corn for December delivery fell as much as 0.3 percent to $5.37 a bushel on the Chicago Board of Trade, and was at $5.3725 at 11:40 a.m. Singapore time. Futures are heading for a third straight quarterly loss.
Warm temperatures and adequate-to-surplus soil moisture will favor developing corn and soybeans throughout the Midwest, DTN said in a report yesterday. Corn probably was sown on 95.431 million acres (38.6 million hectares), or 1.9 percent less than the record 97.282 million farmers intended in March, a Bloomberg survey showed. The U.S. Department of Agriculture will update the acreage estimate at 12 p.m. in Washington today.
“Improving U.S. corn-yield prospects are currently bearish for new-crop prices,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia wrote in a report today. “Nevertheless, tonight’s USDA reports will be the most influential factor for crop prices over the next week.”
Corn yields may average 156 bushels an acre this year, the third-highest on record, taking production to an all-time high 13.62 billion bushels, “barring extreme weather in late July,” according to Bill Gary, the president of Commodity Information Systems in Oklahoma City.
Soybeans for delivery in November were little changed at $12.7475 a bushel in Chicago, while wheat for delivery in September was also little changed at $6.7425 a bushel.
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