May 23 (Bloomberg) -- Wheat futures dropped to a 10-week low on speculation that beneficial crop weather in the Northern Hemisphere will bolster global supplies. Soybeans fell, while corn gained.
Almost 100 percent of the winter-wheat crop in the U.S. Great Plains will get rain in the next three days, boosting crops not ruined by drought, according to Commodity Weather Group LLC in Bethesda, Maryland. Precipitation will aid fields in Europe and parts of Ukraine, while drier weather this week helped planting in Canada and the northern U.S., the report said. Futures have slumped this month after the U.S. projected global stockpiles would rise to a three-year high.
“We have too much global supply,” Jim Gerlach, the president of A/C Trading Co. in Fowler, Indiana, said in a telephone interview. “The market is still adjusting to the rising inventory outlook.”
On the Chicago Board of Trade, soft, red wheat futures for July delivery fell 1 percent to close at $6.525 a bushel at 1:15 p.m. Earlier, the price touched $6.515, the lowest for a most- active contract since March 11. The exchange will be closed May 26 for the U.S. Memorial Day holiday.
Wheat has dropped 12 percent from a 14-month high of $7.44 on May 6 after the U.S. Department of Agriculture’s inventory forecast.
The U.S. is the world’s top shipper. Canadian reserves before this year’s harvest will almost double to the highest in 20 years.
Soybean futures for July delivery fell 0.2 percent to $15.155 a bushel. Yesterday, the price reached an 11-month high of $15.3675 and gained 3.4 percent this week on signs that demand is climbing for livestock feed in China, the biggest oilseed consumer.
Corn futures for July delivery rose 0.3 percent to $4.78 a bushel. The price has dropped 7.9 percent in May after advancing the prior four months, the longest rally since October 2010.