July 15 (Bloomberg) -- Corn fell for a second session in Chicago as warm, dry weather improves prospects for U.S. crops that received twice the normal amount of rain during early growth stages. Wheat also declined, while soybeans rose.
Hot and dry weather in the next five days will boost the outlook for corn in the eastern Midwest, DTN said. Production will total a record 13.95 billion bushels in the U.S., the world’s biggest grower and exporter of the grain, government data show.
"We need some sun, and we need some areas to dry out," Frank J. Cholly, a senior commodities broker at RJO Futures in Chicago, said in a telephone interview. "In the heart of the Corn Belt, the drought’s pretty much over, and we’ve had some timely rains. Maybe this year we’ll get something close to normal yields."
Corn futures for December delivery slid 1.1 percent to settle at $5.035 a bushel at 1:15 p.m. on the Chicago Board of Trade. The contract is down 16 percent this year on forecasts for record U.S. output.
As of July 7, 68 percent of the crop in the main U.S. growing areas was in good or excellent condition, up from 67 percent a week earlier, according to the U.S. Department of Agriculture. The agency is scheduled to update its weekly crop- condition report today.
Wheat futures for September delivery fell 1.7 percent to $6.695 a bushel in Chicago. The price has declined 14 percent this year. Soybean futures for November delivery gained 0.5 percent to $12.6375 a bushel.
--Editors: Thomas Galatola, Millie Munshi
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