Corn and soybeans dropped on speculation rains in parts of the Midwest may help crops in the largest U.S. producing region that’s been hit by the worst drought in at least a generation.
Corn for December delivery lost as much as 1.1 percent to $7.7975 a bushel on the Chicago Board of Trade, before trading at $7.8075 at 11:14 a.m. Singapore time. Soybeans for November delivery declined as much as 2.1 percent to $15.8175 a bushel, before trading at $15.8325.
The National Weather Service said flood advisories were in force in North Dakota and Minnesota, which were hit by drought. Rain may also fall across a much larger area including Iowa and Illinois, said Joel Widenor, of Commodity Weather Group LLC. Iowa and Illinois are the two largest corn and soybean growers.
The “improved weather forecast has been a contributing factor to the weakness in grain prices over the past few days,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, said by phone from Sydney today. “We don’t believe the rain is a game changer. We still expect significant cuts in corn yield prospects compared to the USDA’s July estimate,” he said, referring to the supply and demand report by the U.S. Department of Agriculture that’s set for Aug. 10.
Wheat for September delivery lost as much as 2.2 percent to $8.8375 a bushel in Chicago, before trading at $8.8575. Futures jumped 41 percent since June 15.
Jordan extended the deadline for bids in a tender to buy 100,000 metric tons of wheat to July 31 from July 25, according to three traders with direct knowledge of the situation.
“The debate continues whether current prices are high enough for demand rationing,” Mathews said in a report today. “For Jordan at least, prices are too high.”
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