Corn Drops on CBOT on Improving U.S. Growing Conditions
Corn fell for the first time in three sessions in Chicago on the outlook for warmer weather that may boost planting in the U.S., the largest grower and exporter. Soybeans also declined, while wheat advanced.
Temperatures in the lower Midwest are expected to climb by midweek and precipitation will slow, favoring sowing in several areas before rain returns this weekend, according to a report today from World Weather Inc. Corn has rallied 18 percent this year and last week touched $5.125 a bushel, the highest for a most-active contract since July.
“Weather’s going to improve for planting conditions,” said Sterling Smith, a futures specialist at Citigroup Inc. in Chicago. Corn’s “inability to hold at $5 is prompting a little bit of liquidation.”
Corn futures for May delivery dropped 0.5 percent to close at $4.9925 a bushel at 1:15 p.m. on the Chicago Board of Trade, the first decline since April 2.
The U.S. Department of Agriculture will release its global estimates for supply and demand on April 9, which may be adding to “jitters” in the market, Smith said.
Soybean futures May delivery lost 0.6 percent to $14.6425 a bushel. The oilseed is up 13 percent this year.
Wheat futures for May delivery rose 1 percent to $6.7625 a bushel, erasing losses earlier in the day.
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