June 22 (Bloomberg) -- Corn fell the most in six weeks and soybeans declined on bets that favorable weather will boost yields in the U.S., the world’s biggest grower and exporter.
National Weather Service computer models showed a shorter period of hot weather next week, and less heat will boost Midwest crop development, World Weather Inc. said. Increased soil-moisture reserves from rain this week and showers in the next two weeks will maintain favorable growing conditions, the forecaster said.
The weather outlook “is pressuring the grain markets,” said Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa. “Rain and warmer temperatures are just what the crops need.”
Corn futures for December delivery fell 24.5 cents, or 3.6 percent, to $6.5575 a bushel at 10:50 a.m. on the Chicago Board of Trade. A close at that price would mark the biggest drop for a most-active contract since May 11.
Soybean futures for November delivery declined 12.5 cents, or 0.9 percent, to $13.3725 a bushel. On June 20, the price touched $13.30, the lowest for a most-active contract since May 17.
About 70 percent of the corn crop and 68 percent of soybeans were in good or excellent condition as of June 19, the U.S. Department of Agriculture said this week.
“The crops are getting better,” Roose said. “The government ratings are likely to show further improvement next week.”
Corn is the biggest U.S. crop, valued at $66.7 billion in 2010, followed by soybeans at $38.9 billion, government figures show.
--Editors: Patrick McKiernan, Millie Munshi
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