July 2 (Bloomberg) -- Corn futures dropped to a five-month low on expectations for favorable growing conditions in the U.S., the world’s top exporter. Soybeans fell, and wheat rose.
Light showers and moderate temperatures forecast for the next two weeks across growing areas will aid corn pollination, while flooding in Iowa and Illinois will ease, said Andy Karst, a meteorologist at World Weather Inc. in Overland Park, Kansas. About 75 percent of the crop was in good or excellent condition as of June 29, up from 74 percent a week earlier, U.S. Department of Agriculture data show.
“We know the soil-moisture profile is one of the best on record,” Dan Basse, president of AgResource Co. in Chicago, said in a telephone interview. “The coolness in the long-range weather models looks quite favorable for the crop.”
Corn futures for December delivery fell 1.1 percent to close at $4.18 a bushel on the Chicago Board of Trade, after touching $4.1625, the lowest since Jan. 10. Prices dropped 15 percent in the second quarter on the outlook for ample supplies.
Domestic corn stockpiles were 3.85 billion bushels at the start of June following a record 2013 crop, the USDA said June 30. That topped the average estimate of 3.72 billion bushels in a Bloomberg survey of 26 analysts.
Soybeans futures for November delivery dropped 0.5 percent to $11.415 a bushel, after falling to $11.32 yesterday, the lowest for a most-active contract since December 2011.
Wheat futures for delivery in September rose 0.5 percent to $5.755 a bushel.
Egypt’s state grain buyer bought 180,000 metric tons from Romania and 60,000 tons of Russian wheat yesterday, spurning offers from France and the U.S. The country is the largest importer, according to the USDA.