May 14 (Bloomberg) -- Wheat futures fell, extending the longest slump in almost five months, as speculation mounted that global supplies will be sufficient. Corn declined amid forecasts for beneficial crop weather in the U.S.
World wheat stockpiles will rise 0.5 percent to 187.4 million metric tons by June 1, 2015, the U.S. Department of Agriculture said May 9. Yesterday, the premium that exporters paid for soft, red winter wheat at terminals near New Orleans dropped to the lowest in almost eight months, USDA data show.
“The market is realizing we are not going to be running out of grain any time soon, and adjusting lower,” Jim Gerlach, the president of A/C Trading Co. in Fowler, Indiana, said in a telephone interview. “U.S. wheat is overpriced. The U.S. is returning to its role as a supplier of last resort.”
Wheat futures for July delivery fell 2.7 percent to close at $6.9025 a bushel at 1:15 p.m. on the Chicago Board of Trade. The price dropped for the sixth straight session, the longest slump since Dec. 19. The most-active contract has declined as much as 7.6 percent from a 14-month high of $7.44 on May 6.
Corn futures for July delivery fell 1.4 percent to $4.955 a bushel. Earlier, the price touched $4.9525, the lowest since April 22.
Warmer, drier weather across the Great Plains and Midwest in the next two weeks will speed planting progress and crop development, triggering grain sales by speculators and farmers, Gerlach said.
Soybean futures for July delivery gained 0.2 percent to $14.8675 a bushel after falling as much as 1.1 percent.
Today, Deere & Co., the world’s largest maker of agricultural equipment, posted second-quarter sales that trailed estimates by analysts and cut its full-year revenue forecast.
Deere said that soybean prices in the 12 months that start Sept. 1 will fall 21 percent to $10.25 from a year earlier, compared with $10.75 forecast by the USDA on May 9.
Corn will drop 7.4 percent to $4.35, compared with $4.20 estimated by the USDA.