Corn futures fall as warm weather seen to aid US planting

Corn futures fell for the first time this week on speculation that warm, dry weather in the central US will allow farmers to quickly plant the country's biggest crop.

Temperatures will be 10 degrees Fahrenheit above normal during the next 10 days, helping to firm muddy soil for planting equipment in most of the Midwest and South, said Mike Tannura, the president of T-Storm Weather in Chicago. The USDA will release its first progress report on planting on April 12. Corn prices are down 16% this year.

Corn futures for May delivery fell 8.25 cents, or 2.3%, to US$3.4825 a bushel on the CBOT, after rising 3.5% during the previous three sessions. The most-active contract touched US$3.435 on April 1, the lowest level since October 6.

The more quickly the crop is planted, the better chance it has of standing up to extreme temperatures in July and August, and of maturing before the first freeze.

Prices also declined on speculation that the Chinese government may sell some inventories starting next week to ease shortages, according to analysts

Corn is the biggest US crop, valued at US$48.6 billion in 2009, government figures show. The US is the world's biggest grower and exporter of the grain.