Corn Falls as Rain Boosts U.S. Crop Outlook; Soy Advances

Corn futures fell the most in two weeks as rain improved prospects for Midwest crops in the U.S., the world’s biggest producer. Soybeans and wheat gained.

As much as six times the normal amount of precipitation fell in areas of Iowa and Illinois, the largest U.S. corn growers, in the past two weeks, National Weather Service data show. Planting was 86 percent complete as of May 26, trailing the five-year average because of the wet weather, Department of Agriculture data show. The government on May 10 forecast a record harvest this year of 14.14 billion bushels, after farmers said in March they would plant the most acres since 1936.

“We’re going to lose acres, but we’re still looking at” good growing conditions, Dewey Strickler, the president of Ag Watch Market Advisers, said in a telephone interview from Franklin, Kentucky. “The soil moisture is much improved” after a drought curbed production last year, he said.

Corn futures for December delivery, after this year’s harvest, fell 1.3 percent to settle at $5.60 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest drop for the contract since May 16. Prices are down 20 percent this year on speculation that global output will surge. Corn for July delivery slid 0.9 percent to $6.5575.

Soybean futures for July delivery climbed 1.5 percent to $15.325 a bushel. Earlier, the oilseed touched $15.4075, the highest since May 23.

Wheat futures for July delivery gained 0.5 percent to $7.0875 a bushel. Earlier, the grain reached $7.145, the highest since May 14.

Corn is the biggest U.S. crop, followed by soybeans, hay and wheat, government data show.

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