Grains Decline on Rapid U.S. Planting Progress; Soybeans Rise
Corn capped the longest slump in more than a month and wheat fell to a six-week low on signs that warm, dry weather will allow U.S. farmers to accelerate planting delayed by a cold, wet April. Soybeans rose.
More than 75 percent of the Midwest, the main growing region, avoided light showers that fell in the past 24 hours, World Weather Inc. said in a report today. While rain will be more widespread May 18 to May 21, the region will be mostly dry from May 24 to May 30, allowing active planting, the forecaster said. Corn sowing was 28 percent complete on May 12, more than double a week earlier, the government reported. The U.S. is the world’s largest grain exporter.
“Most farmers have made very good progress planting corn and spring wheat this week, and rain this weekend will aid early development and yield potential,” Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis, said by telephone. “The grain markets are adjusting to the idea that corn and wheat planting may jump to more than 60 percent to 65 percent completed by May 20.”
Corn futures for delivery in July fell 1.4 percent to close at $6.415 a bushel at 1:15 p.m. on the Chicago Board of Trade, capping for the first three-day drop since April 2.
Wheat futures for July delivery slipped 0.9 percent to $6.8775 a bushel on the CBOT, after touching $6.815, the lowest for a most-active contract since April 3.
Spring-wheat planting was 43 percent completed as of May 12, up from 23 percent a week earlier, the U.S. Department of Agriculture said on May 13.
Soybeans advanced to a seven-week high on signs of sustained demand for U.S. supplies from China, the world’s largest importer.
Rising demand for soy-based animal feed and cooking oil will boost the China’s imports to 66 million metric tons from 59 million forecast in the year that ends Sept. 30, China National Grain and Oils Information Center said in an e-mailed report today.
Soybean futures for delivery in July rose 1 percent to $14.275 a bushel in Chicago, after touching $14.31, the highest for a most-active contract since March 28.
Felix (Kyung) Seo