Corn Falls to Longest Slump in 4 Months as Record Harvest SeenTony C. Dreibus and Luzi Ann Javier
Corn fell for a sixth session, the longest slump since February, as warm Midwest weather bolstered prospects for a record crop in the U.S., the world’s largest exporter. Wheat and soybeans also slid.
Yields may average 156 bushels of corn an acre this year, the third-highest ever, lifting output to a record 13.62 billion bushels, said Bill Gary, the president of Commodity Information Systems in Oklahoma City. Normal or below-average Midwest temperatures are expected over the next 15 days, said Commodity Weather Group. The U.S. government will release acreage and stockpile reports tomorrow at noon in Washington.
“We’re going to have a good crop this year, but some people are downplaying the flood damage in Iowa and in Minnesota and Wisconsin,” Tom Leffler, the owner of Leffler Commodities LLC in Augusta, Kansas. “We still have a long way to go to see what happens” with yields, he said.
Corn futures for December delivery, after the U.S. harvest, fell 1 percent to settle at $5.385 a bushel at 1:15 p.m. on the Chicago Board of Trade. Prices are down 5.6 percent in six sessions. The July contract gained 0.4 percent to $6.6725 a bushel, the third straight advance.
The USDA estimates global output will climb to a record 962.6 million metric tons in the 2013-2014 crop year, up from 855.7 million a year earlier.
Supply in the U.S. will remain at a “comfortable level,” even if planting ends up around 94 million acres, less than the 97.282 million farmers predicted in March, analysts at Morgan Stanley including Bennett Meier wrote in a report yesterday.
Wheat futures for September delivery slid 0.5 percent to $6.7375 a bushel on the CBOT, the sixth straight decline. Soybean futures for November delivery fell 0.1 percent to $12.7525 a bushel in Chicago.