Feb. 7 (Bloomberg) -- Corn fell for a fifth day in Chicago, the longest losing streak since December, on speculation the U.S. government will raise its estimate for stockpiles in the country, the world’s largest shipper.
U.S. inventories will probably total 616 million bushels by Aug. 31, more than the 602 million predicted last month by the U.S. Department of Agriculture, the average estimate of 31 analysts surveyed by Bloomberg showed. The USDA will update its outlook on U.S. and world corn supplies tomorrow.
“No one really wants to hold a big position through the USDA reports,” Victor Thianpiriya, an analyst at Australia & New Zealand Banking Group Ltd., said from Singapore. “There is obviously a risk that the USDA raises its estimate for carry-out for corn,” he said, referring to U.S. supply left in warehouses before the start of the next marketing year on Sept. 1.
Corn for delivery in March slid 0.6 percent to $7.18 a bushel at 7:01 a.m. on the Chicago Board of Trade. The grain declined 2.4 percent in four sessions by yesterday’s close.
Soybeans for delivery in March dropped 0.1 percent to $14.86 a bushel, rebounding from a slide of as much as 0.6 percent. Production in Brazil, set to overtake the U.S. as the world’s largest exporter of the oilseed, may rise to a record 82.7 million metric tons this season, above last month’s 82.5 million-ton estimate, analysts said.
Increasing supplies have spurred a backlog of ships, with vessels waiting as much as 50 days to load at Brazilian ports, Hamburg-based researcher Oil World said Feb. 5.
“We’re still looking at a record-large South American harvest, but logistics and timing issues may prolong the time it takes to get crops into the export market,” Erin FitzPatrick, an analyst at Rabobank International in London, said in a telephone interview. “That will continue to support very strong export demand for U.S. soybeans.”
Wheat for delivery in March declined 0.3 percent to $7.5925 a bushel. In Paris, milling wheat for delivery in May fell 0.6 percent to 240.75 euros ($326.72) a ton on NYSE Liffe.
--Editors: Dan Weeks, Claudia Carpenter.