Corn traded near a 12-week low, poised to snap four months of gains, as planting accelerated in the U.S., the world’s biggest producer. Wheat headed for the first increase in seven sessions.
Corn for July delivery lost as much as 0.2 percent to $4.715 a bushel on the Chicago Board of Trade and was at $4.7175 by 2:10 p.m. in Singapore. Prices dropped to $4.665 yesterday, the lowest since March 4, before rebounding to settle 0.6 percent higher. Futures are down 1.3 percent this week and set to decline 9.1 percent in May, after surging 23 percent in the previous four months.
Farmers planted 88 percent of the crop as of May 25, up from 73 percent a week earlier and matching the previous five- year average, the U.S. Department of Agriculture said May 27. Domestic production is set to climb to a record 353.97 million metric tons in 2014-2015, the agency estimates. The U.S. is also the largest exporter of the grain.
"Corn planting jumped 15 percent," Profarmer Australia, a unit of NZX Ltd., said in a report e-mailed today. "From a planting perspective, U.S. spring crops are all going in on time and therefore the risk of late planting is no longer providing support."
Wheat for July delivery advanced 0.4 percent to $6.415 a bushel, trimming a third weekly slump. About 44 percent of U.S. winter wheat was rated in poor or very poor condition, unchanged from a week earlier, while grain rated good to excellent rose to 30 percent from 29 percent, the USDA said.
While the USDA report raised the proportion of wheat rated in good or excellent condition, "the reading remains at historical lows," Australia & New Zealand Banking Group Ltd. analysts led by Mark Pervan wrote in a note today.
Soybeans for July delivery rose 0.6 percent to $15.07 a bushel, trimming its first monthly loss since January.