March 28 (Bloomberg) -- The Standard & Poor’s GSCI gauge of 24 commodities declined 0.8 percent to 652.64 by 5:05 p.m. in London. The UBS Bloomberg CMCI index of 26 raw materials fell 1.1 percent to 1,533.202.
Corn plunged the most in nine months, sparking a slump in soybeans and wheat, after the U.S. government said domestic inventories were bigger than analysts forecast and that farmers will plant the most since 1936.
Inventories of corn on March 1 fell to a nine-year low of 5.399 billion bushels in the U.S., the world’s biggest grower and exporter, mostly because last year’s drought cut output, the Department of Agriculture said today. While that’s down 10 percent from a year earlier, analysts in a Bloomberg survey were expecting a drop to 4.995 billion. Farmers will sow 97.282 million acres, up from 97.155 million in 2012, the USDA said.
Corn futures for May delivery plunged by the exchange’s 40- cent limit, or 5.4 percent, to $6.9525 a bushel in Chicago, heading for the biggest decline since June 12 and the lowest price since March 7. Trading was 171 percent larger than the average of the past 100 days.
Soybean futures for May delivery tumbled 3.1 percent to $14.09 a bushel on the CBOT, heading for the biggest drop since Nov. 12.
March 1 wheat inventories totaled 1.234 billion bushels, up 2.9 percent from 1.199 billion a year earlier, according to the government. Analysts surveyed by Bloomberg expected 1.165 billion, on average. Demand for the grain in livestock rations may total 375 million bushels in the 12 months through May 31, more than double the amount a year earlier, according to the USDA.
Wheat futures for May delivery tumbled 6.9 percent to $6.875 a bushel on the CBOT, heading for the biggest decline since September 2011.
Grains markets: NI GRMKTS