Corn Posts Biggest Weekly Drop in Six Months; Wheat Advances

May 02, 2014 3:58 pm ET

May 2 (Bloomberg) -- Corn fell, capping the largest weekly drop in six months, on speculation that favorable weather will boost planting in the U.S., the world’s top producer. Hard-red wheat rose to a 14-month high, and soybeans gained.

The seeding pace in the Midwest will accelerate through the end of next week as higher temperatures and drier weather in portions of the Corn Belt aid growers, Commodity Weather Group in Bethesda, Maryland, said today in a report. Yesterday, futures dropped the most in four weeks.

“I’d be surprised if the planters aren’t going now,” Larry Glenn, an analyst with Frontier Ag in Quinter, Kansas, said in a telephone interview. “They should be very active through the weekend. The skies are clear.”

Corn futures for July delivery fell 1.5 percent to close at $4.995 a bushel on the Chicago Board of Trade. This week, the price dropped 2.6 percent, the biggest decline since Nov. 1. The grain has climbed 18 percent this year as exports surged and domestic demand rose.

Hard red-winter wheat futures for July delivery gained 2.2 percent to $8.2175 a bushel. Earlier, the price reached $8.28, the highest for a most-active contract since Feb. 4, 2013.

Output in Kansas, the top state producer of winter varieties, may slump 18 percent this year to the lowest since 1996 following a drought and freezes, the Wheat Quality Council’s annual crop tour showed this week.

Soybean futures for July delivery rose 0.7 percent to $14.7075 a bushel. Yesterday, the price tumbled 3.4 percent, the most in 19 months, on the outlook for favorable planting weather in the Midwest.