Corn, Soybean Futures Decline as Rains Boost Yield Potential of U.S. Crops

Up to 3 inches (7.6 centimeters) of rain since yesterday has relieved dry soil conditions in the South, QT Weather in Chicago said in a report. The forecaster said crops throughout the country will benefit from four storms over the next two weeks. About 72 percent of the nation’s corn and 67 percent of the soybeans were rated good or excellent as July 25, the U.S. Department of Agriculture said yesterday.

“When it is raining in July, U.S. crops usually get bigger and prices fall,” said Bill Biedermann, a senior vice president for Allendale Inc., a researcher and brokerage in McHenry, Illinois. “Crop conditions suggest the potential for record yields this year.”

Corn futures for December delivery fell 1 cent, or 0.3 percent, to $3.77 a bushel on the Chicago Board of Trade, after earlier rising 1.3 percent. Yesterday, the most-active contract touched $3.7575, the lowest level since July 1. The commodity has gained 9.6 percent since June 29, the day before the government said U.S. farmers planted less this year than they had planned.

Soybean futures for November delivery fell 0.5 cent to $9.655 a bushel, erasing an earlier gain of 0.8 percent. Yesterday, the price dropped 1.6 percent, the most since June 4.

Corn is the biggest U.S. crop, valued at $48.6 billion in 2009, followed by soybeans at $31.8 billion, government figures show.