US corn futures decline on early planting concerns

Corn futures declined in Chicago on speculation that early planting may boost supplies in the US, the biggest exporter of the grain.

According to analysts, the USDA estimates 87% of the corn crop was planted as of May 16, compared with 61% a year earlier. Farmers in the US may end up planting 89.8 million acres because of the fast start, more than the 88.8 million forecast by the USDA in March.

Analysts said that in the US, the growing and planting conditions continue to benefit from favourable weather and for the time being are limiting all attempts at a rebound.

Corn for July delivery dropped as much as 0.8% to US$3.57 a bushel on the CBOT and was down 0.6% to US$3.5775 a bushel at 12:01 p.m. Paris time.

The US, the world's largest grower and exporter of corn, accounts for 41% of global output and 58% of world trade in the grain, according to the USDA.

About 67% of the crop was in good or excellent condition as of May 16, based on the first rating of the season. That is above the first-week average of 66% since 1985, which means average US yields may reach 164 bushels an acre, above last week's USDA forecast of 163.5 bushels, analysts said.

Meanwhile, soy for July delivery fell 0.1% to US$9.385 a bushel and wheat for delivery the same month slipped 0.1% to US$4.6725 a bushel.

Milling wheat for November delivery traded on NYSE Liffe in Paris rose 0.7% to EUR142 (US$173.06) a tonne at 12:05 p.m. local time.