Corn Slumps to Lowest Since 2010 on Ample U.S. SuppliesLydia Mulvany
Corn futures fell to the lowest in almost four years as improving crop conditions bolstered expectations for a record harvest in the U.S., the world’s biggest grower. Soybeans dropped to the cheapest since 2011.
Cooler weather and showers in the Corn Belt will aid plant pollination, according to Bethesda, Maryland-based Commodity Weather Group. About 75 percent of the U.S. crop is rated in good or excellent condition, government data show. Wheat futures tumbled the most in 15 months.
Growers in the Midwest are expecting a second straight record corn crop that will boost domestic stockpiles already at a four-year high. U.S. production will rise 2.8 percent to 14.314 billion bushels, the most ever, Linn Group Inc., a broker in Chicago, said in a July 1 report. Money managers cut their wagers on higher prices for the eighth straight week, the longest streak since 2008.
“Weather for pollination for corn looks good, if not great,” Bryce Knorr, a Chicago-based senior grain-market analyst at Farm Futures magazine, said in a telephone interview. “There’s really nothing to provide the market with any support.”
Corn futures for December delivery fell 2.2 percent to close at $4.0625 a bushel on the Chicago Board of Trade. Earlier, the price touched $4.03, the lowest for a most-active contract since Aug. 4, 2010.
Speculators cut their net-long position by 11 percent to 102,188 futures and options contracts in the week ended July 1, data from the U.S. Commodity Futures Trading Commission show. Eight weeks of declines marked the longest slide since November 2008.
Soybean futures for November delivery dropped 0.7 percent to $11.255 a bushel. The price touched $11.16, the lowest since Dec. 15, 2011. The oilseed fell for the sixth straight session, the longest slump since March 19, 2013.
Wheat futures for September delivery declined 3.9 percent to $5.5675 a bushel, the biggest drop since March 28, 2013. The grain touched $5.56, the lowest since Feb. 3.