Corn Falls Most in 5 Weeks on Drier Weather; Wheat, Soy DeclineTony C. Dreibus and Rudy Ruitenberg
Corn tumbled the most in five weeks on speculation that drier weather will allow farmers to accelerate planting in the U.S., the world’s largest grower, and supplies are forecast to rise. Wheat and soybeans declined.
Drier conditions may allow for better-planting progress in the north-central Midwest this week, MDA Information Systems LLC wrote in a report today. U.S. corn inventories, or carryout, in the year that ends on Aug. 31, 2014, will total 2.038 billion bushels, up from an estimated 757 million bushels this year, according to a Bloomberg News survey of 31 analysts.
“Traders expect we’re going to have a big carryout,” Arlan Suderman, a senior market analyst at Peoria, Illinois-based Water Street Solutions Inc., said by telephone. “So what if we lose some acres to planting delays? Add in a drier six- to 10-day outlook, everybody assumes the crop is going to get into the ground and everything is going to be fine.”
Corn futures for July delivery tumbled 3.7 percent to settle at $6.365 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest drop since April 1.
Wheat declined after a three-day tour of fields in Kansas, the biggest U.S. producer of winter varieties, showed drought and freezing weather may not have curbed production as much as expected, Suderman said.
“Many people thought the tour group would see scorched-earth conditions, but they didn’t,” Suderman said.
About 75 growers, grain traders and industry analysts participated in the crop tour last week, surveying 570 fields in Kansas and northern Oklahoma.
Wheat futures for July delivery fell 2.5 percent to $7.0275 a bushel in Chicago, the biggest decrease since April 15.
Soybean futures for July delivery slipped 1.3 percent to $13.6925 a bushel on the CBOT.