U.S. planting of eight major crops will decline 0.7 percent in 2014 to the fewest acres since 2010, and prices of corn, soybeans and wheat cotton will fall for the second straight year, the government said.
U.S. corn and soybean harvests may be smaller than government forecasts after the hottest July since 1955 stunted Midwest crop growth already delayed by late planting, said Roy Huckabay at commodity broker Linn Group.
Wheat will rebound after slumping the most in three weeks today as riots erupted in Egypt, the world’s biggest buyer, because other countries need to replenish stockpiles, said Roy Huckabay from the Linn Group in Chicago.
Corn farmers from Iowa to North Dakota who delayed planting because of unusually heavy rain may stick with plans to sow crops well beyond the date for optimum yields, rather than switch to soybeans or leave fields fallow.
The first U.S. case of mad cow disease in six years may not disrupt the nation’s corn and soybean exports because global demand for crops used as livestock feed is surging, said Roy Huckabay, an executive vice president at Chicago agriculture broker Linn Group.
U.S. corn supplies may be smaller than expected this year, according to analysts including Morgan Stanley’s Hussein Allidina who were surprised by a government forecast for the second-highest planted acreage since 1944.
Cash premiums for soybeans shipped to export terminals near New Orleans climbed relative to futures as the lowest prices since March boosted foreign demand for U.S. inventories. Corn premiums were little changed as farmers boosted sales.