Oct. 4 (Bloomberg) -- Corn and wheat fell in Chicago as supply concerns eased amid signs of increased stockpiles and slowing demand for exports from the U.S., the world’s largest shipper of both grains. Soybeans dropped.
Corn stockpiles in the U.S., the largest grower, totaled 1.28 billion bushels on Sept. 1, 20 percent more than estimated by analysts, the Department of Agriculture said in a report Sept. 30. The USDA said 2.15 billion bushels of wheat were in storage, beating analysts’ estimates of 2.07 billion. Corn and wheat both fell 23 percent in September.
“There’s only one big fundamental in the room, and it’s the lingering fears from the Sept. 30 report,” said Christopher Gadd, an analyst at Macquarie Group Ltd. in London. “People are factoring that into the market.”
Corn for December delivery declined 9 cents, or 1.5 percent, to $5.835 a bushel by 12:07 p.m. London time on the Chicago Board of Trade. The grain is down 6.9 percent this year.
Corn inspected for export at U.S. ports fell 18 percent to 28.4 million bushels in the week to Sept. 29, from a week earlier, the USDA said yesterday. The nation’s crop was about 21 percent harvested as of Oct. 2, behind the five-year average of 23 percent, the agency said.
Rain may fall in parts of Kansas, Oklahoma and Texas, the biggest U.S. producers of winter wheat, aiding establishment of recently planted crops and encouraging seeding, Joel Widenor, director of agriculture services at Commodity Weather Group LLC in Bethesda, Maryland, said in a report today.
“A weekend rain event is likely to bring significant relief to about two-thirds of the belt, with far western areas at most risk to see lingering dryness concerns and areas from central Nebraska through central Texas having the best chance for substantial rain,” Widenor said.
Wheat for December delivery dropped 8.5 cents, or 1.4 percent, to $6.11 a bushel in Chicago. USDA export inspections for the grain rose the least since May in the latest week, figures compiled by Bloomberg show.
Milling wheat for November delivery traded on NYSE Liffe in Paris fell 2.50 euros, or 1.3 percent, to 182.75 euros ($242.12) a metric ton.
Soybeans for November delivery lost 8.25 cents, or 0.7 percent, to $11.6925 a bushel in Chicago, on track for a third straight decline.
--With assistance from Phoebe Sedgman in Melbourne. Editors: Sharon Lindores, John Deane
-0- Oct/04/2011 11:30 GMT
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