Corn futures fell the most in three weeks and soybeans declined, ending the longest rally since 2007, on speculation that rain will improve crops in the U.S., the biggest producer and exporter,reported “Kazakh-Zerno” IA with reference to the “Bloomberg“.
About 71 percent of the corn crop was rated in good or excellent condition as of Aug. 8, up from 68 percent a year earlier, the U.S. Department of Agriculture said yesterday. About 66 percent of soybeans got the top ratings, unchanged from last year. Parts of the Midwest may get 2.9 inches (7.4 centimeters) of rain in the next five days, the National Weather Service said.
“The crops are fantastic,” said Rich Nelson, the director of research for Allendale Inc., a brokerage in McHenry, Illinois. “The market is starting to focus on bigger U.S. crops.”
Corn futures for December delivery fell 9 cents, or 2.2 percent, to close at $4.09 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest decline since July 19. On Aug 4, the most-active contract reached a 13-month high of $4.39 after Russia halted grain exports for the rest of the year following a drought.
Soybean futures for November delivery slid 13 cents, or 1.3 percent, to $10.22 a bushel. The price climbed in the previous nine sessions, the longest rally since November 2007. On Aug. 5, the oilseed reached $10.49, the highest level since Jan. 7.
‘Increased Worries’
Prices also fell on signs the economies in the U.S. and China are cooling, Nelson said.
Reports in China, the leading soybean buyer and second- biggest corn consumer, showed the pace of increases in imports and property prices slowed in July. The Shanghai Composite Index fell the most in six months. U.S. data last week indicated a sluggish jobs market.
“There are increased worries about the health of the world economy,” Nelson said. “The deflation story is surfacing again.”
Corn is the biggest U.S. crop, valued at $48.6 billion in 2009, followed by soybeans at $31.8 billion, government figures show.
