July 27 (Bloomberg) -- Corn declined as rain and cooler weather in growing areas of the U.S. eased concerns about yield losses. Wheat retreated after Egypt said it bought Russian grain.
Rains in the U.S. northern and southern plains and North China may favor development of corn and soybean crops, Telvent DTN Inc. said in a forecast yesterday. As much as 1.25 inches of rain is expected through today in parts of Iowa, the biggest producer of corn and soybeans, according to Accuweather.com.
“The market will still react to weather” though the crop will be more resilient to hot weather in July than in August, Victor Thianpiriya, an agricultural commodity analyst at Australia & New Zealand Banking Group Ltd., said by phone from Melbourne. Inadequate rains in Illinois, the second-biggest U.S. grower, will “keep the market a little bit on the edge.”
December delivery corn fell 3.5 cents, or 0.5 percent, to $6.8325 a bushel at 10:14 a.m. London time on the Chicago Board of Trade. Soybeans for November delivery were little changed at $13.9025 a bushel in Chicago.
Wheat fell after Egypt, the world’s biggest importer of the grain, shunned U.S. and European Union supplies in favor of Russian grain. The North African country yesterday agreed to purchase 120,000 metric tons of Russian milling wheat, said Nomani Nomani, vice chairman of the state-run General Authority for Supply Commodities.
“Egypt is going to continue to buy wheat from Russia, not from the U.S. or the EU,” said Izabela Dabrowska, a senior agricultural markets analyst at Warsaw-based BGZ Bank. “For sure it affects the sentiments on the market.”
Wheat for September delivery retreated as much as 0.5 percent to $6.9075 a bushel, before trading at $6.9325. Milling wheat for November delivery fell 0.4 percent to 193.50 euros ($280.50) a ton.
--With assistance from Soraya Permatasari in Melbourne, Tony Dreibus in London and Whitney McFerron in Richardton, North Dakota. Editors: John Deane, Dan Weeks
-0- Jul/27/2011 09:47 GMT
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