Wheat, corn fall on outlook for good harvest

[August 10, 2013]  NEW YORK (AP) -- Corn fell to its lowest in almost three years as favorable weather conditions in the Midwest raised expectations for a good crop.

The price of corn has slumped since March after the government reported that farmers intended to plant the most corn since 1936 this year. Prices have steadily fallen as cooler, wet weather has increased the likelihood of a big crop.

"We've had a long streak of mild summer temperatures. That's really helped," said Todd Hultman, a grains analyst at DTN. "The conditions for the crops are very good at this point."

December corn fell 6.5 cents, or 1.4 percent, to $4.5325 a bushel, the lowest since August 2010. The price is down 46 percent from its peak of $8.39 last August.

The government will publish its monthly report on the outlook for crops on Monday and traders are expecting it to show projections for a good corn harvest, Hultman said.

The price of wheat also fell Friday on expectations of a strong harvest in Europe, adding to a glut in global supplies.

December wheat fell 7.75 cents, or 1.2 percent, to $6.335 a bushel. The price of the grain is at its lowest since June last year. Soybeans for November delivery fell 2 cents, or 0.2 percent, to $11.8225 a bushel.

In metals trading, gold and silver rose.

Gold for December rose $2.30, or 0.2 percent, to $1,312.20 an ounce. Silver for September gained 21.4 cents, or 1.1 percent, to $20.4070.

Copper for September rose 3.6 cents, or 1.1 percent, to $3.3065 a pound. Platinum for October rose $9, or 0.6 percent, to $1,500.60 an ounce and palladium for September advanced $2.45, or 0.3 percent, to $741 an ounce.

The price of oil climbed $2.57 to $105.97 on positive economic news from China. Industrial production in the world's No. 2 economy grew 9.7 percent, up from 8.9 percent in June and the fastest in five months.

Heating oil rose 4 cents to $2.99 a gallon, natural gas fell 7 cents to $3.23 per 1,000 cubic feet and wholesale gasoline rose 5 cents to $2.91 a gallon.

[Associated Press; By STEVE ROTHWELL]

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.