Aug. 22 (Bloomberg) -- Corn futures fell the most since June and soybeans dropped on speculation that wet weather in the Midwest is increasing the chances for bumper crops in the U.S., the world’s top grower. Wheat also declined.
As much as 1.5 inches (3.8 centimeters) of rain will fall in parts of Iowa and Illinois, the largest U.S. producers of corn and soybeans, National Weather Service data show. U.S. farmers probably will harvest a record 13.8 billion bushels of corn this year, and soybean production may rise 8 percent, according to government forecasts.
“The rains that are being seen in Iowa are adding to some pressure” on prices, Sterling Smith, a futures specialist at Citigroup Inc. in Chicago, said in a report.
Corn futures for December delivery fell 3.9 percent to settle at $4.645 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest decline since June 28. The price has dropped 33 percent this year on speculation that supplies will increase in the U.S., the world’s biggest exporter.
Soybean futures for November delivery declined 1.3 percent to $12.8675 a bushel on the CBOT, extending this year’s slide to 8.7 percent.
Wheat futures for December delivery fell 1.3 percent to $6.405 a bushel in Chicago.
Corn is the biggest U.S. crop, followed by soybeans, hay and wheat, government data show.
--Editors: Steve Stroth, Thomas Galatola