By Luzi Ann Javier
June 26 (Bloomberg) -- Corn futures in Chicago were headed for their third straight weekly decline on speculation warm weather will aid crop development in the Midwest, the largest U.S. growing region.
Midwest temperatures will be “near- to above-normal” during the next five days, according to a report by forecaster Meteorlogix LLC. Before today, corn futures had fallen in five of the past six sessions. The U.S. is the world’s largest grower and exporter of the grain.
“Corn prices have declined on the back of the benign Midwest weather forecast, which induced the continuation of recent fund liquidation,” Peter McGuire, managing director at Commodity Warrants Australia Pty in Sydney, said today. Prices may continue to slide in the next two weeks, he said.
Corn for December delivery rose 0.3 percent to $4.025 a bushel in after-hours electronic trading on the Chicago Board of Trade at 12:59 p.m. Paris time. The contract with the most open interest earlier fell 0.6 percent to $3.9925, its lowest since April 28, and is headed for a 4 percent drop this week.
Wheat for July delivery rose 0.5 percent to $5.355 a bushel in Chicago, capping its fourth straight weekly decline at 3.6 percent.
U.S. grain prices have been falling on favorable harvest weather in the delta states and southern plains, Commodity Warrants’ McGuire said. About 20 percent of the winter-wheat crop was harvested as of June 21, up from 9 percent a week earlier, the U.S. Department of Agriculture said June 23.
Weather Watch
“The southern plains winter wheat areas will see near- to above-normal temperatures and near- to below-normal rainfall,” Meteorlogix said in its 10-day weather outlook yesterday. “The delta states will see mostly above-normal temperatures and below-normal rainfall.”
Euronext milling wheat for November delivery fell 1 euro, or 0.7 percent, to 140.50 euros ($198) a metric ton at 1:23 p.m. in Paris. The contract has dropped 3.3 percent this week.
Soybeans for November delivery, after the U.S. harvest, gained 0.4 percent to $10.06 a bushel in Chicago, leaving the most-active contract little changed for the week.
