By Jae Hur
Feb. 10 (Bloomberg) -- Corn declined as investors slowed their purchases before publication of new crop estimates by the U.S. government today. Soybeans climbed for a fifth day, while wheat was little changed.
Corn gained 5.4 percent in the previous three days and soybeans advanced 5.9 percent in the previous four sessions on speculation the U.S. Department of Agriculture will lower its world output estimate after dry weather damaged crops in Argentina and Brazil.
“It’s a kind of position adjustment ahead of the USDA report,” Hiroyuki Kikukawa, general manager of research at IDO Securities Co. in Tokyo, said today.
Corn for March delivery fell as much as 1.1 percent to $3.7325 a bushel on the Chicago Board of Trade and traded at $3.76 as of 2:13 p.m. Singapore time. Futures are down 53 percent from a record $7.9925 on June 27.
Soybeans for March delivery were 0.4 percent higher at $10.06 a bushel after earlier trading as low as $9.985. Futures are down 39 percent from a record $16.3675 on July 3.
Smaller soybean and corn crops may be forecast for Argentina and Brazil, the biggest exporters after the U.S., according to a Bloomberg News survey last week. Smaller crops in South America may boost demand for U.S. supplies.
“I don’t expect a big surprise in today’s USDA report,” Kikukawa said.
While the report is likely to be “supportive” for soybeans, corn may trade between $3.50 and $4.00 a bushel pending a survey due next month on U.S. farmers’ planting intentions for the coming year, he said.
Shipping Costs
Still, recent jumps in shipping costs may slow interest among Asian importers, including South Korea and Japan, said Tomokazu Amano, research team chief at Mitsubishi Corp. Futures & Securities Ltd. in Tokyo.
The Baltic Dry Index, a measure of shipping costs for commodities, rose for a 15th consecutive session on demand to ship iron ore to China and increased port congestion. The index jumped 11 percent yesterday to 1,815 points, according to the Baltic Exchange. The gauge has more than doubled this year and is on its longest winning streak since 2007.
Wheat for March delivery was unchanged at $5.65 a bushel after gaining 1.4 percent yesterday. Prices have tumbled 58 percent from a record in late February 2008.
China today reduced its estimate of the winter wheat crop affected by the nation’s worst drought in 50 years.
About 130 million mu (8.7 million hectares) of wheat in the eight major producing provinces are affected, the Office of State Flood Control and Drought Relief Headquarters said today. The office had estimated 143 million mu on Feb. 6.
To contact the reporter on this story: Jae Hur in Singapore at jhur1@bloomberg.net
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