Wheat futures fell for the second straight day on higher inventories than forecast in the U.S., the world’s top exporter, with rain expected to boost crops in the Great Plains. Soybeans and corn dropped.
The U.S. government said yesterday that U.S. stockpiles will be 583 million bushels, 4.5 percent higher than forecast last month, as demand for livestock feed ebbed. Rain on April 17 in central and southeast areas of the Plains will reduce the amount of hard red winter wheat under moisture stress to 40 percent from 55 percent now, Commodity Weather Group said.
"The forecast is looking wetter to me this morning in key areas," said James Bower, the president of Bower Trading, Inc. in Lafayette, Indiana. In the USDA report, "there didn’t seem to be too much that was a game changer or super constructive," he said.
Wheat futures for July delivery fell 1.1 percent to close at $6.70 a bushel at 1:15 p.m. on the Chicago Board of Trade. Yesterday, the contract dropped 1.7 percent.
Rain next week probably will aid crops in two-thirds of Kansas, the top U.S. grower of winter wheat, Joel Widenor, a meteorologist at Bethesda, Maryland-based Commodity Weather Group, said in a telephone interview.
Corn futures for May delivery dropped 0.2 percent to $5.0125 a bushel. The price declined 0.9 percent yesterday.
Soybean futures for May delivery fell 0.9 percent to $14.8225 a bushel, ending a two-day rally.
Money managers increased bets on a corn rally for seven straight weeks to a 15-month high, and bullish soybean wagers rose 42 percent this year, the latest Commodity Futures Trading Commission data show.
"This massive buildup in fund long positions in the five major agriculture groups looks a little worrisome to me," Bower of Bower Trading said. "The market acts a little wobbly."