Sept. 1 (Bloomberg) -- Corn declined on speculation that demand for the U.S. crop may slow after futures had their biggest monthly gain this year in August, making the grain less competitive than exports from other countries.
December-delivery corn slipped 0.4 percent to $7.6425 a bushel on the Chicago Board of Trade at 2:36 p.m. Singapore time, after gaining 15 percent last month.
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. Corn and soybean crops in the Midwest, the largest U.S. growing region, “will continue to suffer” as the driest areas have a “fairly limited” chance of significant rain over the next week, Telvent DTN Inc. said in a forecast yesterday.
“It is easier to substitute Argentine and Brazilian corn exports for U.S. exports,” MF Global Inc. wrote in a report e- mailed today. “As long as the U.S. weather pattern remains dry, it could be supportive” to corn and soybean prices, it said.
Investors may also be locking in gains from last month’s rally ahead of the Labor Day holiday weekend in the U.S., MF Global said. Trading will halt on Sept. 5 because of the public holiday.
Soybeans for November delivery fell 0.5 percent to $14.4975 a bushel, after rising 7.4 percent in August. Wheat for December delivery declined 1 percent to $7.84 a bushel, after an 11 percent gain last month.
Rough rice for November delivery was unchanged at $17.945 per 100 pounds on the Chicago Board of Trade, erasing a 0.6 percent loss earlier.
The export price in Thailand, the world’s largest rice shipper, may climb to more than $700 per metric ton from $596 on Aug. 31 under a government plan to buy the milled grain from farmers at above market prices, Secretary for Commerce Yanyong Phuangrach said today.
--With assistance from Phoebe Sedgman in Melbourne and Jeff Wilson in Chicago. Editors: Jason Scott, Ovais Subhani
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