Wheat fell to the lowest level in three months, extending the biggest monthly drop since 2011, as planting progressed in the U.S. and Canada amid favorable weather. Corn declined to the lowest price since February.
Wheat for July delivery dropped as much as 1.8 percent to $6.1625 a bushel on the Chicago Board of Trade, the lowest price for a most-active contract since March 3. The grain traded at $6.185 at 2:15 p.m. in Singapore. Last month, the price fell 13 percent, the most since September 2011.
Spring-wheat planting was 74 percent complete as of May 25, up from 49 percent a week earlier, according to the U.S. Department of Agriculture. Showers favored spring wheat areas in the western Dakotas and western Manitoba last week, Commodity Weather Group LLC said in a report May 30. Some 30 percent of the winter crop was in good or excellent condition, up from 29 percent a week earlier, the USDA said on May 27.
"Market concerns continued to fade around the timeliness of planting of spring wheat crops in the U.S. and Canada," Australia & New Zealand Banking Group Ltd. analysts, including Paul Deane, wrote in a report today. "Planting progress reports late last week showed strong advances in plantings in Saskatchewan and Manitoba. The outlook is for continued favorable weather in Canada, with warmer weather and minimal showers positive for further rapid planting progress."
A break in showers until the weekend will allow extra fieldwork in the Northern Plains, while the Canadian Prairies will see the best seeding this week before rainfall picks up again, Bethesda, Maryland-based Commodity Weather Group said. Accelerated planting in Canada and Ukraine supports the USDA’s forecast for world reserves to rise to a three-year high.
Corn for July delivery declined 0.9 percent to $4.6175 a bushel after touching $4.6125, the lowest since Feb. 28. In May, the grain dropped 10 percent, the most in a year.
Soybeans for July delivery declined as much as 1 percent to $14.7825 a bushel, the lowest price for a most-active contract since May 21. Last month, the oilseed dropped 1.3 percent, snapping a three-month rally, the longest since August 2012. The July contract last traded at $14.82.
U.S. farmers planted 88 percent of the corn crop as of May 25, matching the five-year average pace, and soybean seeding was 59 percent finished, up from 33 percent a week earlier, the USDA said on May 27.
The U.S. is the biggest corn and soybean producer, and domestic output of both crops is set to climb to records, the USDA said May 9.