April 26 (Bloomberg) -- Corn futures fell in Chicago, extending a second weekly loss, on expectations for global production to jump as U.S. farmers prepare to plant a record crop amid forecasts for drier weather in the Midwest.
Corn for July delivery fell as much as 1 percent to $6.18 a bushel on the Chicago Board of Trade and was at $6.19 by 7:06 a.m. local time. Prices, heading for a 2.2 percent drop this week, slumped to a 10-month low of $6.10 on April 24.
World corn production will jump 10 percent in the 2013-14 season on increased planting and better yields, rising to 939 million metric tons from 851 million tons, the International Grains Council said yesterday. Most of the U.S. Midwest will benefit from drier, warmer weather through to early next week, forecaster DTN said yesterday.
"There’s expectations of significant improvement in carryout stocks going into the new crop for corn," said Brett Cooper, senior manager markets at FCStone Australia Pty. "We’re looking at a significant rebuilding of U.S. corn stocks."
Global corn stockpiles will rise to 143 million tons at the end of the next season from 117 million tons predicted at the end of 2012-13, the London-based IGC forecast.
The U.S. Department of Agriculture said in February that U.S. production in 2013-14 may climb to a record 14.53 billion bushels (369 million tons), up 35 percent from the past year’s drought-reduced crop as farmers sow the most since 1936.
U.S. "weather forecasts show an improvement in the next 15 days, which should allow for rapid progress in corn sowing," Paris-based farm adviser Agritel said in a report.
Wheat for July delivery fell 0.7 percent to $6.985 a bushel, poised to decline 1.8 percent this week. Milling wheat for delivery in November traded on NYSE Liffe in Paris declined 0.7 percent to 208.75 euros ($271.46) a ton.
Farmers across the world may harvest 680 million tons of wheat, from 655 million tons in 2012-13, led by gains in the European Union and the former Soviet Union, according to the IGC. Stockpiles may advance to 181 million tons from 179 million tons.
Warmer temperatures in the U.S. Plains and Midwest this weekend and into next week will help stimulate wheat growth and aid corn germination, MDA Information Services LLC wrote in a crop-weather report today.
Soybeans slipped 0.4 percent to $13.6725 a bushel, set for a 1.1 percent weekly loss.
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