Corn fell for the first time in seven days on speculation that improving weather in the U.S., the world’s largest grower, will increase supplies while demand from China may slow.
Near the confluence of the Merced and San Joaquin rivers, the heart of the California farm belt, Bob Kelley watches the driest year ever erode water supplies and prospects for the dairy business his family began in 1910.
Cocoa futures posted the biggest loss since August on speculation that supplies will improve as the harvest advances in West Africa, the world’s leading growing region.
The condition of the U.S. winter- wheat crop improved last week after rain fell in growing areas in the Midwest. The cotton harvest neared completion.
Rainfall is set to return to sugar- cane growing areas of Brazil, the world’s largest producer, in the second half of October, according to World Weather Inc.
Cotton futures jumped the most in three months as rain hampers the harvest in parts of the U.S., the world’s largest exporter. Coffee and cocoa climbed, while sugar and orange juice dropped.
Cocoa growing areas in Ivory Coast and Ghana, the world’s largest producers, will get improved rainfall in the next two weeks, according to World Weather Inc.
The U.S. winter-wheat crop deteriorated as extended dry weather slows plant development in the Great Plains. Corn and soybean harvests were nearing completion.
Cotton rose to the highest price in more than six weeks as the worst flooding in a decade reduces production in China, the world’s largest grower and user of the fiber. Orange-juice futures fell.
Ethanol strengthened against gasoline as corn, the feedstock for the biofuel in the U.S., reached a two-week high on concern that dry weather would reduce the crop.
"The rains have been a little bit slow in leaving the coastal areas."
- Drew Lerner on Jan 08, 2013