Aug. 27 (Bloomberg) -- Corn fell in Chicago on speculation the grain will be in ample supply even as hot weather threatens to erode yields. Soybeans declined.
U.S. corn production may be a record 13.46 billion bushels, 25 percent more than last year, when a drought hurt crops, the Professional Farmers of America newsletter said Aug. 23 after a four-day tour of Midwest fields. Yields may be 154.1 bushels an acre, below the U.S. Department of Agriculture’s current projection while still the third-highest ever, the tour found. Yesterday corn surged the most in 14 months on speculation hot, dry weather in the U.S. would hurt crops.
"Last week’s crop tour continues to point to strong U.S. corn-yield potential," Deutsche Bank AG strategists including Christina McGlone said in an e-mailed report. "Weather premium and volatility will remain as a shift to warmer temperatures helps crop development, but increases moisture needs."
Corn for delivery in December slumped 0.3 percent to $4.99 a bushel at 7:01 a.m. on the Chicago Board of Trade. Prices touched $5.0825 yesterday, the highest since July 17, before closing up 6.5 percent, the most since June 2012. The grain is still down 29 percent this year on expectations for record production.
Temperatures this week may average as much as 20 degrees Fahrenheit (11 degrees Celsius) higher than normal across much of the central Midwest, QT Weather said in a report. Fifty-nine percent of the corn crop was in good or excellent condition as of Aug. 25, down from 61 percent a week earlier, the USDA said yesterday. Pro Farmer’s estimate is below the USDA’s current production forecast at 13.763 billion bushels.
Soybeans for delivery in November fell 0.3 percent to $13.8475 a bushel. Yesterday the oilseed jumped 4.6 percent, the most since October 2011. The USDA cut its rating for the crop yesterday, estimating 58 percent as good or excellent, down from 62 percent a week earlier.
Wheat for delivery in December was little changed at $6.67 a bushel after rising 3.2 percent, the most since April, by the close yesterday. In Paris, milling wheat for delivery in November advanced 0.7 percent to 193 euros ($257) a metric ton on NYSE Liffe.
--Editors: Claudia Carpenter, John Deane
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