Aug. 28 (Bloomberg) -- Corn dropped for a second day as damage to plants from hot, dry weather in the U.S. Midwest may be limited, as the crop is past the critical pollination development stage. Wheat fell, while soybeans rose.
Little or no rain has fallen in parts of Iowa and Illinois, the biggest U.S. producers of corn and soybeans, in the past two weeks, National Weather Service data show. The dry weather “favors any early-maturing crops” while stressing late- maturing crops including soybeans, forecaster DTN said in a report today.
“It’s so late in the game that we’re not going to change the yield in corn as much as we could on beans,” Frank J. Cholly, a senior commodities broker at RJO Futures in Chicago, said in a telephone interview. “The weather in the next couple of weeks is going to be critical for soybeans. The dry weather may actually be more beneficial to corn than it is bad.”
Corn futures for December delivery fell 1.1 percent to settle at $4.8075 a bushel at 1:15 p.m. on the Chicago Board of Trade. The contract is down 20 percent this year as the U.S. Department of Agriculture projects domestic production at a record 13.76 billion bushels. The U.S. is the world’s biggest grower and exporter.
Wheat futures for December delivery dropped 0.6 percent to $6.595 a bushel on the CBOT.
Soybean futures for November delivery rose 0.2 percent to $13.7275 a bushel in Chicago. The price has rallied 18 percent since reaching an 18-month low on Aug. 7.
Corn is the biggest U.S. crop, followed by soybeans, hay and wheat, government data show.
--With assistance from Whitney McFerron in London and Phoebe Sedgman in Wellington. Editors: Thomas Galatola, Millie Munshi