Wheat Falls on Record Canada Crop Forecast; Corn, Soybeans RiseJeff Wilson
Wheat fell for the second time this week after Canada’s government said farmers harvested their biggest crop ever. Corn and soybeans climbed as U.S. growers withheld supplies.
Canada’s wheat crop is estimated at 37.5 million metric tons, up from a September outlook of 33 million tons and 38 percent higher than a year earlier, the government said today. The average production estimate of 10 analysts surveyed by Bloomberg News was 33.98 million tons. Production of canola, an oilseed, will rise 29 percent to a record.
“The Canadian crop forecasts were a big surprise,” Dale Durchholz, the senior market analyst for AgriVisor LLC in Bloomington, Illinois, said in a telephone interview. “There is no reason to worry about any shortage of global wheat supplies this year.”
Wheat futures for delivery in March fell 1 percent to close at $6.6175 a bushel at 1:15 p.m. on the Chicago Board of Trade. The grain declined 15 percent this year on signs of expanding global supply.
Corn and soybeans gained on speculation that U.S. farmers are holding out for higher prices before selling more of this year’s crop, said Dave Smoldt, a vice president for FCStone LLC in West Des Moines, Iowa.
The price of corn also climbed as hedge funds bought back short positions after prices rose above last week’s high and the 40-day moving average, Smoldt said.
Corn futures for delivery in March gained 1.2 percent to $4.365 a bushel in Chicago, capping the first two-session gain since Nov. 11. The grain tumbled 37 percent this year as the U.S. government is predicting domestic production will rise 30 percent to the biggest ever.
Soybean futures for delivery in January gained 0.7 percent to $13.295 a bushel, after declining as much as 0.6 percent. The oilseed lost 5.7 percent this year on the USDA forecast for record global output.
“Elevators have sold most of the grain they bought from farmers earlier this year, and now they are running on empty to fill contracts for January to March,” Smoldt said in a telephone interview.