Wheat futures declined, staying on course for the longest fall in 10 months on fears that favorable crop weather will enhance harvests. Corn was higher in Chicago, although still heading for its sharpest weekly tumble since July as forecast for good weather fueled hopes that planting will escalate.
Wheat is down 9.6% from a 14-month peak on May 6 after US government reports projected sufficient global inventories. A report by Bethesda, Maryland-based Commodity Weather Group LLC showed that the grain belt stretching from Minnesota to Saskatchewan will see increased planting following drier weather while up to 75% of the crop in Great Plains is likely to receive rain in the next week, Bloomberg reported.
“The weather is looking better to stabilize winter-wheat yields and increase planting in the northern U.S. and most of Canada. No one is scared about shrinking supplies,” said chief analyst Mark Schultz at Minneapolis-based Commodity Investment Co.
The per-bushel price of July delivery wheat dropped 0.9% to $6.7725 as of 11:28 am on the Chicago Board of Trade. The commodity was on course for the eighth consecutive loss, the longest fall since July 1. The grain was earlier down at $6.725.
The US is the world’s leading exporter of wheat. On May 6, the grain hit $7.44, a high last seen in February 21, 2003.
July corn added 0.2% to $4.85-1/4 per bushel by 0318 GMT on Friday. Corn planting has intensified in the US Midwest after prolonged delays in key growing areas, including Iowa.
Old-crop corn shipment sales of 343,000 tonnes met analysts’ estimates.
Kaname Gokon of Tokyo-based Okato Shoji told Reuters that the prospects for corn prices are bearish considering enhanced crop weather, which is making it possible for farmers to step out in the fields in preparation for planting.
July delivery soybeans plunged 0.2% to $14.675 per bushel.
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