Corn fell in Chicago, heading for its worst January performance in two years, after the International Grains Council said global production will climb to a record.
Corn output will total 860.8 million metric tons in the 2011-12 crop year, 0.9 percent higher than forecast in November, the IGC said in a report yesterday. The group also increased its estimate for stockpiles. Wheat production will be an all-time high 689.8 million tons, up 1 percent from the prior estimate, the council said, raising its inventory forecast.
“Because the demand forecast was increased by only 2 million tons, the global market surplus has expanded” for wheat, said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt. “The IGC likewise predicts record corn production in the current crop year.”
Corn for March delivery dropped 0.4 percent to $6.0375 a bushel by 10:35 a.m. London time on the Chicago Board of Trade. The grain is up 0.7 percent this week and has slid 6.6 percent this month.
Wheat for March delivery rose 0.1 percent to $6.0625 a bushel. The grain has increased 0.7 percent this week and is down 7.1 percent for the year. Milling wheat for March delivery traded on NYSE Liffe in Paris gained 0.1 percent to 198.75 euros ($256.80) a ton.
Soybeans for delivery in March fell 0.6 percent to $11.90 a bushel in Chicago. The oilseed has advanced 2.7 percent this week, reducing the drop in 2012 to 1.5 percent.
