Corn tumbled the most in seven weeks and soybeans fell after weekend rains revived crops in the southern U.S. and widespread precipitation expected in the next five days may replenish soil moisture in the Midwest, reported “Kazakh-Zerno” NA with reference to the “Bloomberg“.
Some fields in the Midwest and South got as much as 1.75 inches (4.4 centimeters) of rain during the weekend with most areas likely to receive 1.25 inches to 2.5 inches this week, said Mike Tannura, the president of T-Storm Weather LLC in Chicago. No sustained heat is forecast in the next two weeks, reducing the risk of stress on crops, Tannura said.
“The market is taking out the weather premium after weekend rains boosted crops in areas that had been dry,” said Greg Grow, the director of agribusiness at Archer Financial Services Inc. in Chicago. “Forecasts this week are wetter and a bit cooler than expected.”
Corn futures for December delivery fell 13.25 cents, or 3.3 percent, to $3.94 a bushel on the Chicago Board of Trade, the largest drop for a most-active contract since May 28.
The government said June 30 that U.S. farmers planted less this year than they had planned, helping to fuel a rally that sent prices on July 15 to a six-month high of $4.10.
Soybean futures for November delivery fell 13 cents, or 1.3 percent, to $9.72 a bushel in Chicago, the biggest decline since June 23. The oilseed is up 7.7 percent this month on speculation that hot, dry weather may damage immature plants in the U.S.
Corn is the largest U.S. crop, valued at $48.6 billion in 2009, followed by soybeans at $31.8 billion, government figures show. The U.S. is the world’s biggest producer and exporter of both crops.