Corn futures slumped to the lowest in almost three years on speculation that favorable weather will boost prospects for a record crop in the U.S., while expanding harvests from Brazil to Ukraine boost global supplies. On the Chicago Board of Trade, corn futures for December delivery fell 1.4 percent to close at $4.5325 a bushel at 1:15 p.m., Earlier, the price touched $4.52, the lowest for a most-active contract Sept. 3, 2010. Bets by hedge funds on a slump rose to a record, government data showed today. This year, the grain has tumbled 35 percent, the most among 24 raw materials in the Standard & Poor’s GSCI Spot Index. The U.S. harvest in 2013 will jump 30 percent to 14.036 billion bushels (356.5 million metric tons) from a year earlier, the average of 27 analyst estimates compiled by Bloomberg shows. World inventories will climb 23 percent to 152.36 million, another survey showed. Temperatures during the second half of August may rise above normal in the U.S. Midwest, aiding crop development slowed by cool weather, World Weather Inc. said. “The forecast looks nearly ideal for boosting corn grain weights,� Greg Grow, the director of agribusiness at Archer Financial Services Inc. in Chicago, said in a telephone interview. “The growth in production outside the U.S. is going to slow demand� for domestic supplies this year,� he said. The U.S. government is scheduled to update its crop forecasts on Aug. 12. The nation was the world’s top exporter last year, followed by Brazil. Goldman Forecast Surging supply spurred analysts from Goldman Sachs Group Inc. to cut their price forecasts, and R.J. O’Brien & Associates in Chicago, the U.S. grain-trading hub, says futures may drop as low as $3.50 a bushel this year. Speculators turned bearish a month ago for the first time since 2010, and bets on a decline rose 4.6 percent to 113,072 futures and options contract as of Aug. 6, Commodity Futures Trading Commission data showed today. Cheaper corn is boosting profit for buyers including Archer-Daniels-Midland Co., the largest processor of the grain, and Tyson Foods Inc., the biggest U.S. meat processor. Declining feed costs may help cap global meat prices, which rose to within 2 percent of a record in June, according to data from the United Nations’ Food & Agriculture Organization in Rome. Some fields in Nebraska, Iowa, South Dakota and Minnesota will get as much as 1.5 inches (3.8 centimeters) of moisture in the next three days, aiding crops, according to the National Weather Service. Precipitation in parts of the states was 50 percent below average in the past 30 days. Soybean futures for November delivery fell 0.2 percent to $11.8225 a bushel. The price has dropped 16 percent this year. Wheat futures for December delivery declined 1 percent to $6.4725 a bushel. In 2013, the price has slumped 17 percent. Corn is the biggest U.S. crop, followed by soybeans, hay and wheat, USDA data show. To contact the reporter on this story: Jeff Wilson in Chicago at Jwilson29@bloomberg.net To contact the editor responsible for this story: Patrick McKiernan at pmckiernan@bloomberg.net

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