Corn Declines for a Sixth Day Ahead of June 28 USDA Reports

June 27, 2013 06:08 AM
Corn Declines for a Sixth Day Ahead of June 28 USDA Reports

Corn fell for a sixth day amid expectations for record global production and ahead of a U.S. planting report tomorrow. Wheat and soybeans rose.

Corn was probably sown on 95.4 million acres in the U.S., 1.9% below what farmers had planned to seed in March, a Bloomberg survey showed. Yields may average 156 bushels an acre this year, the third-highest ever, lifting output to a record 13.62 billion bushels from 10.78 billion bushels last year, said Bill Gary, the president of Commodity Information Systems in Oklahoma City.

The U.S. Department of Agriculture has forecast the world corn harvest will climb to a record 962.6 million tons in 2013-14 from 855.7 million tons a year earlier.

"The expectations are mostly priced in," Tetsu Emori, a commodity fund manager at Astmax Asset Management Inc., said by phone from Tokyo today. "People are waiting for the official data," delaying trades, he said.

Corn for delivery in December fell 0.4% to $5.4175 a bushel on the Chicago Board of Trade by 7:33 a.m. on volume that was 17% below the 100-day average for that time of day, according to data compiled by Bloomberg. The grain is 22% lower this year. A sixth day of losses would be the longest losing streak for the December contract since Nov. 15.

The USDA is scheduled to release its planting estimates, based on a national survey of growers, tomorrow at 11 a.m. Central time.

Supply in the U.S. will remain at a "comfortable level," even if the sowing matches Morgan Stanley’s forecast of 94 million acres, analysts at the bank including Bennett Meier wrote in a report yesterday.

Soybeans for November delivery advanced 0.2% to $12.78 a bushel in Chicago, while wheat for September delivery rose 0.6% to $6.81 a bushel. Milling wheat for November delivery traded on NYSE Liffe in Paris was 0.1% higher at $257.40 a ton.


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