Corn plunged as soybeans approached their biggest tumble in seven weeks amid speculation that the US planting pace will surge due to warmer and drier weather. Wheat also fell.
Commodity Weather Group said the Corn Belt over the central and southern regions will experience dry conditions until May 8 and a warmer weather early next week will make soils less wet, creating conditions for planting.
As Bloomberg reports, data from the US Department of Agriculture shows that the planting of soybeans is just starting and field operations are proceeding near the normal pace, although corn planting has been dragged by rain and melting snow in recent weeks.
“The forecast is nearly ideal for farmers to get seeds in the ground and for plants to emerge very quickly. Most farmers can plant all their acres in a week, and we should see a big jump in progress,” said Jim Gerlach of Fowler, Indian-based A/C Trading Co. He added that big harvests were likely to be witnessed.
June delivery corn futures declined 1.2% to $5.125 per bushel as of 12:05 pm on the Chicago Board of Trade as of 12:05 pm, on course for the heaviest loss since April 22. Prices swung around $5.0625, the lowest point since April 22.
The per-bushel price of July delivery Soybean plunged 2.6% to $14.7325, approaching the biggest loss since March 10.
According to Dairyherd, soy tumbled drastically in reaction to US shipments data. US export deals dropped slightly last week.
The two commodities soared above 3% in March after wet conditions in Midwest prevented farmers from beginning planting and the Ukraine crisis threatened grain exports. Dwindling oilseed inventories in the US also affected prices.
The USDA Export Sales Report showed that corn saw solid sales last week.
The per-bushel price of wheat for July settlement plunged 1.5% to $7.1075. Prices saw a seven-session rally, hitting $7.2475 on Wednesday.
To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Jonathan Millet at email@example.com