May 7 (Bloomberg) -- Soybean futures fell to a five-week low on speculation that the U.S. government will report this week that supplies worldwide are increasing. Corn and wheat dropped.
Global soybean stockpiles may rise to a record 79.68 million metric tons before next year’s Northern Hemisphere harvest, boosted by the biggest crop ever in the U.S., Bloomberg News surveys showed. The Department of Agriculture in Washington is set to release estimates on May 9. The first deliveries against the expiring May futures contract added to supply concerns.
“The market is shifting to a much more comfortable global supply story into 2015,” Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis, said in a telephone interview. “Deliveries are a sign that people are no longer willing to hold inventories with a big world-crop outlook.”
Soybean futures for July delivery fell 0.9 percent to close at $14.4625 a bushel at 1:15 p.m. on the Chicago Board of Trade. Earlier, the price touched $14.4175, the lowest for a most- active contract since March 31.
Wheat futures for July delivery fell 0.2 percent to $7.3775 a bushel. Yesterday, the price reached $7.44, the highest since February 2013.
The grain has climbed 22 percent this year amid dry weather in the U.S. Great Plains and speculation that Black Sea region supplies from the Black Sea region would be disrupted by unrest between Ukraine and Russia.
Corn futures for July delivery dropped 0.7 percent to $5.14 a bushel, the first slide this week. U.S. planting was 29 percent complete as of May 4, up from 11 percent a year earlier, USDA data on May 5 showed.
Futures climbed 22 percent this year, partly as demand for exports rose from the U.S., the world’s biggest shipper.
--With assistance from Whitney McFerron in London.