Most U.S. stocks slip after two-day rally; corn reaches record

Emerging Markets

The MSCI Emerging Markets Index added 0.6 percent to a three-week high. The Hang Seng China Enterprise Index of mainland companies listed in Hong Kong gained 1.3 percent, while the BSE India Sensitive Index added 1.8 percent. The Micex Index jumped 1.2 percent in Moscow. The Shanghai Composite Index fell 0.9 percent to the lowest level since March 2009.

Japan’s bonds fell, sending 10-year yields up the most in seven weeks. Japan’s industrial output decreased 0.1 percent in June from May, when it declined 3.4 percent, the Trade Ministry said. The median estimate of 29 economists surveyed by Bloomberg News was for a 1.5 percent increase.

The nation’s benchmark 10-year bond, which saw yields slide to nine-year lows last week, led declines amid speculation traders sold the notes ahead of an auction on Aug. 2. The 10- year yield advanced 3 1/2 basis points, or 0.035 percentage point, to close at 0.78 percent, according to Japan Bond Trading Co., Japan’s largest interdealer debt broker. That was the highest level since July 12 and the sharpest rise since June 5.

Corn Surges

December-delivery corn climbed as much as 3 percent to $8.1725 a bushel on the Chicago Board of Trade and traded recently at $8.1450 a bushel. Soybeans for November delivery jumped as much as 2.9 percent to $16.648 a bushel and wheat for September delivery gained as much as 2.4 percent to $9.1975 a bushel.

The drought in the Midwest is unlikely to be broken in the six to 10 days from July 27, as rains that fell in many parts of the region were not enough to improve conditions, Telvent DTN Inc. said.

Crop conditions are the poorest since 1988 and parts of the U.S. are suffering from the worst drought since 1956. Corn has soared 61 percent since June 15, signaling higher food prices and boosting costs for producers of meat and ethanol.

Bloomberg News

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