Bloomberg News

Corn Drops Ahead of Report Expected to Show Flagging Exports

September 01, 2011

Sept. 1 (Bloomberg) -- Corn and wheat futures declined in Chicago ahead of a U.S. government report today that may show exports dropped from a year earlier, after a price jump for the grains in August reduced their appeal to overseas buyers.

December-delivery corn slipped 1 percent to $7.595 a bushel on the Chicago Board of Trade at 1:11 p.m. Paris time. The grain climbed 15 percent last month, the biggest monthly gain this year and making U.S. supplies less competitive.

Export sales of corn and wheat from the U.S. probably fell in the week ended Aug. 25 from a year earlier, according to a Bloomberg News survey. The U.S. Department of Agriculture last month cut its outlook for U.S. corn exports in the year through September 2012 by 3 million metric tons to 45 million tons.

“USDA has already lowered its export projection,” MF Global wrote in a report e-mailed today. “In today’s world it is also easier to substitute Argentine and Brazilian corn exports for U.S. exports.”

The volume of corn exports is forecast to be held back in fiscal 2012 because of high prices resulting from tight U.S. supplies, the USDA said in an outlook report yesterday. For wheat, large exportable quantities of the grain in Russia and Ukraine limit U.S. competitiveness, the department said.

Investors will be “looking at the latest USDA weekly export sales this afternoon to see if there’s any sign of demand slipping with prices where they are,” Dave Norris, an independent U.K. grains trader, said on his website today.

Paris Wheat

Wheat for December delivery fell 1.2 percent to $7.82 a bushel in Chicago, after climbing 11 percent last month. Milling wheat for November delivery traded on NYSE Liffe in Paris slipped 1.1 percent to 209 euros ($298.39) a ton, following last month’s 6.8 percent gain.

The USDA is scheduled to release its weekly report on export shipments at 8:30 a.m. in Washington today. Export sales of corn probably fell to between 200,000 and 700,000 tons, from 1.69 million tons in the year-earlier week, according to a survey of three analysts by Bloomberg News. Wheat export sales are forecast to have slipped to between 400,000 and 750,000 tons, from 1.02 million tons.

Investors may also be locking in gains from last month’s rally ahead of the Labor Day long weekend in the U.S., MF Global said. Trading will halt on Sept. 5 because of the public holiday.

Soybeans for November delivery fell 0.9 percent to $14.4475 a bushel, after rising 7.4 percent in August. Rough rice for November delivery slipped 0.1 percent to $17.925 per 100 pounds on the Chicago Board of Trade.

The rice export price in Thailand, the world’s largest shipper, may climb to more than $700 a ton from $596 on Aug. 31 under a government plan to buy the milled grain from farmers at above market prices, said Yanyong Phuangrach, secretary for commerce.

--With assistance from Phoebe Sedgman in Melbourne and Jeff Wilson and Whitney McFerron in Chicago. Editors: Sharon Lindores, John Deane

-0- Sep/01/2011 11:44 GMT

To contact the reporter on this story: Luzi Ann Javier in Singapore at Rudy Ruitenberg in Paris at

To contact the editor responsible for this story: Richard Dobson at Claudia Carpenter at

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