Corn (CBOT:ZCN14) slumped to a four-year low on speculation that favorable weather in the U.S. will aid crops in the biggest exporter. Wheat and soybeans dropped to the lowest since 2010.
Corn for December delivery fell as much as 0.3 percent to $3.6725 a bushel on the Chicago Board of Trade, the lowest for a most-active contract since July 2010. Prices were at $3.675 by 2:56 p.m. in Singapore, heading for a third monthly loss.
Corn plunged 24 percent in the past year and wheat lost 20 percent on signs of increasing global supply. A second straight bumper U.S. corn crop will boost global reserves to the highest since 2000, the U.S. Department of Agriculture said July 11. World wheat inventories at the end of the 2014-2015 season may climb to the highest in three years, it forecast.
“The weather is great, yields are fantastic, production is good,” Jonathan Barratt, the chief investment at Ayers Alliance in Sydney, said by phone today. “So you’d need a real shift in the weather” to increase prices, he said.
U.S. corn output will reach 13.86 billion bushels, the second-highest on record, USDA data show. About 76 percent of the crop was in good or excellent condition in the week ended July 20, the highest for this time of year since 2004, the agency said this week. Temperatures in the Midwest will cool later this week, preventing stress on crops, MDA Weather Services said yesterday.
World wheat stockpiles at the end of 2014-2015 will total 189.54 metric million tons from 188.61 million tons forecast in June and 184.29 million tons a year earlier, the USDA estimates.
Wheat for September delivery (CBOT:ZWN14) lost as much as 0.8 percent to $5.2025 a bushel, the lowest level for most-active futures since July 2010, and traded at $5.2525. Soybeans for November delivery (CBOT:ZSN14) declined as much as 0.3 percent to $10.55, the lowest since October 2010, and were at $10.56.
Copyright 2014 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.