Corn futures fell the most in two weeks on speculation that crop conditions will improve in the U.S., the world’s biggest producer and exporter. Wheat and soybeans dropped.
Nebraska and Iowa got as much as 8 inches (20 centimeters) of rain over the weekend, and moisture in much of the rest of the Corn Belt remains “favorable,” according to Commodity Weather Group in Bethesda, Maryland. Weather conditions are expected to benefit crops through the next several weeks, the group’s report said.
“When you look at the entire domestic picture of the U.S., the rains that have fallen in most cases have been beneficial,” James Bower, the president of Bower Trading Inc. in Lafayette, Indiana, said in a telephone interview. “The crop is rated very, very high.”
Corn futures for December delivery fell 1.6 percent to $4.4475 a bushel at 11:26 a.m. on the Chicago Board of Trade. A close at that price would mark the biggest drop for a most-active contract since June 9. Earlier, the grain rose as much as 1.2 percent to $4.5725, the highest since June 6.
As of June 15, 76 percent of the U.S. crop was rated in good or excellent condition, government data showed on June 16. The Department of Agriculture will issue an update this afternoon.
Through June 20, futures dropped 19 percent in the past 12 months. The USDA has forecast that farmers will harvest a record 13.935 billion bushels in the season starting Sept. 1.
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