Corn Drops on Favorable U.S. Growing Conditions; Wheat Declines

Jun 16, 2014 3:08 pm ET

June 16 (Bloomberg) -- Corn futures fell for the first time in three sessions on the outlook for beneficial crop weather in the U.S., the world’s largest grower. Wheat and soybeans also declined.

Showers in the U.S. during the next two weeks will help “recharge soil moisture,” according to a report today from WeatherBELL Analytics LLC. As of June 8, 75 percent of the U.S. corn crop was in good to excellent condition, compared with 63 percent a year earlier, according to the U.S. Department of Agriculture. The USDA will update conditions later today.

“Ratings are awfully good,” Mike Krueger, the president of The Money Farm in Harwood, North Dakota, said in a telephone interview. “The crop’s in the ground, it looks good, and it’s probably going to get better.”

Corn futures for December delivery fell 1.2 percent to close at $4.42 a bushel at 1:15 p.m. on the Chicago Board of Trade. Prices dropped for five straight weeks through June 13, the longest slump since January 2013.

World corn inventories in the year beginning Sept. 1 are forecast at 182.65 million metric tons, the USDA said last week, up from a May estimate of 181.73 million. Stockpiles in the current season were projected at 169.05 million.

Wheat futures for delivery in September slipped 0.9 percent to $5.9125 a bushel, erasing earlier gains of as much as 1.4 percent. World stockpiles are forecast to rise to 188.61 million tons in the year that began June 1, up from 186.05 million the prior year, according to the USDA.

Soybeans futures for November delivery lost 0.3 percent to $12.17 a bushel.