Corn Extends Decline to 12-Week Low as U.S. Planting Accelerates

May 28, 2014 04:17 AM
Corn Extends Decline to 12-Week Low as U.S. Planting Accelerates

Corn fell for a second day to the lowest in more than 12 weeks after farmers in the U.S., the top exporter, boosted sowing amid forecast for a record crop.

Futures for July delivery lost as much as 0.3 percent to $4.685 a bushel on the Chicago Board of Trade, the lowest level for a most-active contract since March 4, and were at $4.695 by 2:23 p.m. in Singapore. Prices fell 1.7 percent yesterday, the biggest decline since May 15.

About 88 percent of the crop was planted as of May 25, up from 73 percent a week earlier, the U.S. Department of Agriculture said yesterday. Domestic production is set to climb to a record 353.97 million tons in 2014-2015, the agency estimates. Abundant rain in the Midwest will maintain moisture for corn growth, according to MDA Information Systems LLC.

"The solid planting pace coupled with very favorable weather and a decent increase to world stocks continues to weigh down prices," Sam Sloane, senior analyst risk management and advisory at Ikon Commodities Pty., wrote in an e-mail today.

Wheat for July delivery declined as much as 0.6 percent to $6.3725 a bushel, the lowest for a most-active contract since March 11, and was at $6.41. The U.S. winter wheat crop was rated 44 percent poor or very poor in the week ended May 25, unchanged from a week earlier, according to the USDA.

Soybeans for delivery in July advanced 0.8 percent to $15 a bushel, after dropping 1.8 percent yesterday.


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