Corn and wheat dropped on forecast that rains may ease some of the stress on crops caused by dry weather in the U.S., Brazil and Argentina, the biggest growers. Corn for March delivery lost as much as 0.5 percent to $6.04 per bushel on the Chicago Board of Trade and was at $6.0425 at 2:53 p.m. in Singapore. It has slipped 3.8 percent this year. Wheat for delivery in the same month fell 0.3 percent to $6.0575 a bushel, taking the annual loss to 24 percent. Showers in Brazil later this week and during the weekend will help ease stress to developing corn, and more rain will be needed, Telvent DTN Inc. said yesterday. Soil moisture for spring growth of wheat in the central and southern plains of the U.S. will be recharged through rain or snow, it said in a report. “Going into the holidays, we’re expecting people to cover their positions so there could be more downside today,� Lynette Tan, an analyst at Phillip Futures Pte., said by phone from Singapore today. Corn gained 1 percent yesterday, capping the first three- day gain since Nov. 30, while wheat rose 1.3 percent on concerns hot, dry weather in Brazil and Argentina may hurt crops. Scattered showers and thunderstorms will filter into corn, wheat, and soybean growing areas in Argentina during the next few days, which will help ease stress to crops, Telvent said. The La Nina weather event, which can cause droughts in South America, may be near its peak and is expected to gradually decline in the coming months, the Australian Bureau of Meteorology said on its website today. La Nina climate indictors are weaker than at the same time in 2010, the bureau said. Soybeans for March delivery dropped 0.3 percent $11.5125 a bushel. The oilseed has slipped 18 percent this year. To contact the reporter on this story: Ranjeetha Pakiam in Kuala Lumpur at rpakiam@bloomberg.net To contact the editor responsible for this story: Richard Dobson at rdobson4@bloomberg.net

Source