Corn Falls Most in Two Weeks, Soybeans Slide, as Rain May Boost U.S. Crops

Corn fell the most in five weeks and soybeans declined on speculation that ample rain and cooler temperatures have boosted prospects for crops in the U.S., the biggest exporter of both commodities.

Corn was rated 70 percent good or excellent as of Aug. 22, up from 69 percent a week earlier, the U.S. Department of Agriculture said in a report yesterday. Soybean yields may be higher than expected as pod counts are up from a year ago, according to a seven-state field tour last week organized by the Professional Farmers of America newsletter.

“The corn crop is going to be pretty good,” said Jerod Leman, a broker at Wellington Commodities in Carmel, Indiana. “In the beans, there are so many pods out there it’s unbelievable. If we would have had more rain, we would have had a record crop here in Indiana. We’re going to have a good crop.”

Corn futures for December delivery fell 12.25 cents, or 2.8 percent, to close at $4.205 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest drop since July 19. The price has climbed 3.4 percent this month, partly on speculation demand would grow after Russia banned grain exports because of drought.

Soybean futures for November delivery fell 6.5 cents, or 0.6 percent, to $9.99 a bushel in Chicago. Soybeans have slipped 4.8 percent since reaching $10.49 on Aug. 5, the highest level in almost seven months.

Futures also declined as investors liquidated long positions, or bets that prices would rise, after corn reached a two-week high on Aug. 19 and after soybeans rallied, Leman said.

“It feels to me like everybody was long the grains and we’re definitely overbought,” Leman said. “Everybody’s leaning to the same side of the boat, and it’s starting to take on some water. Not that it’s sinking, but we’re due for a correction.”

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