Corn Falls Most in Five Weeks on U.S. Crop Outlook; Wheat Drops

Jun 23, 2014 3:46 pm ET

June 23 (Bloomberg) -- Corn futures fell the most in five weeks on speculation that crop conditions will improve in the U.S., the world’s biggest producer and exporter. Wheat dropped, while soybeans rose.

Nebraska and Iowa got as much as 8 inches (20 centimeters) of rain over the weekend, and moisture in much of the rest of the Corn Belt remains “favorable,” according to Commodity Weather Group in Bethesda, Maryland. Weather conditions are expected to benefit crops through the next several weeks, the group’s report said.

“When you look at the entire domestic picture of the U.S., the rains that have fallen in most cases have been beneficial,” James Bower, the president of Bower Trading Inc. in Lafayette, Indiana, said in a telephone interview. “The crop is rated very, very high.”

Corn futures for December delivery fell 2.1 percent to close at $4.425 a bushel on the Chicago Board of Trade, the biggest drop for a most-active contract since May 15.

As of June 15, 76 percent of the U.S. crop was rated in good or excellent condition, government data showed on June 16. The Department of Agriculture will issue an update this afternoon.

Corn prices have dropped 20 percent in the past 12 months. The USDA has forecast that farmers will harvest a record 13.935 billion bushels in the season starting Sept. 1.

Wheat futures for September delivery declined 0.7 percent to $5.89 a bushel. The price has dropped 16 percent in the past 12 months.

Soybean futures for November delivery rose 0.2 percent to $12.3375 a bushel. The price climbed for the fourth straight session, the longest rally since April 29.