Cooler temperatures in the top two corn-producing states kept corn futures below $5.
Corn extended declines to a 33-month low in Chicago on speculation U.S. crops will escape damage from hot weather in the next few weeks as temperatures remain cooler than normal. Soybeans also dropped.
Temperatures in central Iowa and Illinois, the top two corn-growing states, were forecast to remain below 80 degrees Fahrenheit through at least tomorrow, National Weather Service data show. Temperatures in the Midwest and northern and central Great Plains may see "significant, persistent cool weather during August," AccuWeather Inc. said in a report today. The U.S. Department of Agriculture has pegged domestic production at a record 13.95 billion bushels.
"In most areas the crops are growing rapidly and production figures are higher and rising," economist Dennis Gartman said today in his daily Gartman Letter. "We may well see a corn crop becoming steadily closer to 15 billion bushels."
Corn for December delivery fell 0.3 percent to $4.7475 a bushel by 7:04 a.m. on the Chicago Board of Trade. Earlier, the price touched $4.72 a bushel, the lowest for most active futures since October 2010. Futures fell 4.9 percent last week and traded below $5 a bushel on July 2 for the first time since October 2010.
While below-normal temperatures in the next six to 10 days will favor corn pollination, extended cool weather might delay maturity and leave crops vulnerable to an early freeze, forecaster DTN said today. Some dry areas of the Midwest may see rain in the next six to 10 days, benefiting developing soybeans, it said.
Soybeans for November delivery fell 0.9 percent to $12.17 a bushel. Futures touched $12.0725 on July 26, the lowest price since Feb. 2, 2012 and fell 3.6 percent last week. Output in the U.S., the largest soybean grower, will climb to a record 3.42 billion bushels, the USDA estimates.
Wheat for delivery in September rose 0.1 percent to $6.51 a bushel in Chicago. In Paris, milling wheat for November delivery dropped 0.4 percent to 187 euros ($248) a metric ton on NYSE Liffe, after earlier touching 185.75 euros, the lowest for a most-active contract since December 2011.
Russia harvested about 36 percent of its wheat area as of July 26, collecting 27.8 million tons, up from 19.4 million tons at the same time last year, the country’s Agriculture Ministry said today. The European Union raised its forecast last week for production in the bloc to 131.7 million tons of soft wheat, up from an outlook of 128.9 million tons at the start of July.
"European markets continue to operate under the shadow of harvest results and price action coming out of the Black Sea," Jaime Nolan-Miralles, a commodity risk manager at INTL FCStone Inc. in Dublin, said in an e-mailed report today.