Corn fell for a second day in Chicago on speculation that rain forecast for Argentina in the next few days will improve the prospects for developing crops.
Temperatures in Argentina may reach 108 degrees Fahrenheit (42 degrees Celsius) in parts of La Pampa and Buenos Aires provinces before cooling next week, and showers this weekend may bring 0.7 inch (1.8 centimeters) of rain, according to AccuWeather Inc. Another 1.5 inches of rain may occur across northern Buenos Aires and Cordoba to Entre Rios and Santa Fe next week. The country is the world’s fourth-largest shipper of corn and third-biggest soybean exporter, according to the U.S. Department of Agriculture.
"There is some concern being raised once again regarding the crops in Brazil and Argentina, with focus upon the latter primarily," economist Dennis Gartman wrote in his Gartman Letter today. "One should not get carried away bullishly of corn and soybeans predicated upon weather problems in South America yet."
Corn for March delivery lost 0.6 percent to $4.29 a bushel by 6:23 a.m. on the Chicago Board of Trade. Prices rebounded from a 40-month low on Jan. 10 after the USDA said the U.S. harvest and stockpiles were less than forecast by analysts. Argentina’s annual corn production may be 25 million metric tons, the USDA said Jan. 10, cutting its forecast from 26 million tons a month earlier.
Soybeans for March delivery were little changed at $13.075 a bushel. Prices touched $13.1675 yesterday, the highest since Dec. 26. The National Oilseed Processors Association is set to release an estimate on U.S. soybean processing today, which may show crushing by 13 major companies rose 2.5 percent in December from a year earlier, according to a Bloomberg survey.
Wheat for March delivery fell 0.2 percent to $5.7825 a bushel in Chicago. Milling wheat for the same delivery month in Paris advanced 0.3 percent to 195.50 euros ($266.08) a ton on NYSE Liffe.