Soybeans fell to the lowest since January 2012, as rain in the Midwest and more forecast for August boosted U.S. yield potential. Wheat and corn futures rose on speculation that demand will improve after prices slid.
Milling wheat futures were little changed in Paris as U.S. markets were closed and as traders weighed signs of importer demand for the grain against an outlook for bigger harvests in the Black Sea region.
Soybeans rebounded from the lowest in a month amid speculation this week’s price slump will attract importers, while crop conditions in Brazil may decline on the return of dry weather in northern growing areas.
Corn fell for a third day in Chicago on speculation global supplies following the next Northern Hemisphere harvest will be ample even after excess rain cut sowing in the U.S., the world’s biggest grower and exporter.
Wheat fell the most in a week in Chicago after Canada, the world’s fourth-biggest exporter of the grain, predicted a 3.9 percent gain in production this year. Corn and soybeans dropped for a second day.
France’s worst dry spell in half a century and England’s hottest April in three centuries are threatening to cut wheat production in Europe, producer of a fifth of the world’s crop, eroding stockpiles that are already expected to fall by the most in four years.
Soft wheat production in the European Union may be 2.6 percent larger than last year as increasing harvests in southern and eastern Europe make up for declines in the U.K., grain-industry lobby Coceral said.