Corn fell, capping the biggest weekly slump since April, on signs of easing global demand as farmers complete planting of a projected record crop in the U.S., the world’s top exporter. Wheat and soybeans declined.
Export sales of corn in the week ended June 6 slid to 149,460 metric tons, the lowest since January, the U.S. Department of Agriculture said yesterday. Farmers may harvest 14.005 billion bushels, 30 percent more than a year earlier, boosting global production by 12 percent to a record, the agency said on June 12. Goldman Sachs Group Inc. cut its price forecast yesterday, citing the U.S. recovery from last year’s drought.
“Global supplies are on the rise, and that has reduced demand for U.S. corn,” Greg Grow, the director of agribusiness for Archer Financial Services Inc. in Chicago, said in a telephone interview. “The weather forecasts for warm temperatures and regular rains should improve U.S. crop potential. We are shifting to a more plentiful supply outlook.”
Corn futures for delivery in December fell 0.4 percent to close at $5.33 a bushel at 1:15 p.m. on the Chicago Board of Trade. This week, the price dropped 4.6 percent, the most since the five days ended April 5.
Goldman cut its price forecasts for corn to $4.75 and $11 a bushel for soybeans in three, six and 12 months. The previous estimates for the latter two periods were $5.25 for the grain and $12.50 for the oilseed.
Soybean futures for delivery in November slipped 0.2 percent to $12.9825. This week, the price dropped 2.4 percent. The U.S. harvest will surge 12 percent this year to a record 3.39 billion bushels, according to the USDA.
Corn and soybeans for July delivery rose as farmers withheld remaining supplies from last year’s harvest that was reduced by drought, Grow said.
For July, corn advanced 1.8 percent to $6.55 and soybeans gained 0.4 percent to $15.165.
Wheat futures for July delivery declined 0.7 percent to $6.8075 a bushel. This week, the price dropped 2.2 percent as harvesting advances across the U.S., the largest exporter.
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