July 10 (Bloomberg) -- Corn prices erased gains in Chicago on speculation that world supplies of the grain will be ample while a government report tomorrow is expected to show production in the U.S. at an all-time high.
U.S. farmers, the world’s top producers, may harvest 13.983 billion bushels of the grain, according to a Bloomberg News survey before the Department of Agriculture updates its forecast tomorrow. That would be about 0.2 percent less than estimated last month while still 30 percent above the past season’s crop, when production was reduced by drought. Yesterday, corn prices rallied 4.2 percent, the most in 10 weeks, on speculation hot weather in the U.S. would damage crops.
"We do not expect any material surprises in tomorrow’s reports," economist Dennis Gartman said today in his daily Gartman Letter. "Certainly given the seriousness of the recent rally in corn, wheat and soybeans, we cannot imagine the report can be even more supportive."
Corn for delivery in December fell 0.3 percent to $5.2025 a bushel by 7:43 a.m. on the Chicago Board of Trade, after earlier climbing as much as 1.1 percent. Futures traded on volume that was 59 percent above the 100-day average for that time of day, according to data compiled by Bloomberg. Soybeans for November delivery gained 0.3 percent to $12.795 a bushel after rising 3.9 percent in the previous two sessions.
Parts of southern Illinois, the second-largest corn growing state, may see temperatures above 90 degrees Fahrenheit (32 degrees Celsius) today, National Weather Service data show. Areas of the western Midwest and central Great Plains were under a heat advisory, it said.
Wheat for September delivery was little changed at $6.7725 a bushel in Chicago. Milling wheat for November delivery increased 0.4 percent to 197.50 euros ($253) a metric ton on NYSE Liffe in Paris.
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