Wheat dropped as Australia, the world’s fourth-biggest exporter, increased its production estimate after rains boosted soil moisture, adding to global supply. Corn fell.
Wheat for July delivery declined as much as 0.5 percent to $6.935 a bushel on the Chicago Board of Trade, before trading at $6.94 at 9:17 a.m. Singapore time.
Output is set to reach 25.4 million metric tons in 2013-2014 from 24.9 million tons estimated in March and 22.1 million tons a year earlier, the Australian Bureau of Agricultural and Resource Economics and Sciences, or Abares, said today. Exports may decline to 19.6 million tons in the year starting Oct. 1 from 20.1 million tons, it said. Australia’s eastern regions are set for a wetter-than-normal winter, boosting the outlook for production after some farmers started sowing crops into dry soil.
“North of 25 million is a relatively high number,” Michael Pitts, a commodity sales director at National Australia Bank Ltd., said by phone from Sydney. “We’re also forecasting what should be pretty good rains across New South Wales in particular over the next few days so it’s a positive estimate and definitely it’s a slightly bearish market.”
The strongest focus now is on a U.S. Department of Agriculture global crop report to be released today at 12 p.m. in Washington, he said. Many people in the market expect corn acreage to drop by 3 million to 3.5 million acres and for soybean acreage to rise by about 1 million acres, according to Pitts.
Corn for December delivery slid 0.3 percent to $5.4925 a bushel. Soybeans for delivery in November were little changed at $13.25 a bushel.
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