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Corn, Rice, Soybeans, Wheat Fall as Inventories Grow

March 11, 2011 at 22:25 by Vladimir Vyun

Corn, rice, soybeans, and wheat declined today as the earthquake in Japan caused speculation that demand for raw materials will wane. The commodities also weakened as the US Department of Agriculture predicted higher global supplies.

The 8.9-magnitude earthquake off the north coast of Japan shook buildings in Tokyo and caused multiple deaths. On the other positive side, specialists say that the disaster most likely won’t cause a long-term damage to supplies in the country.

World stockpiles of wheat will reach 181.9 million metric tons by the end of the marketing year on May 31, according to the USDA forecast. Corn stockpiles expected to advance from 122.5 million tons last month to 123.1 million tons, because of the better harvests in Brazil. Rice inventories may reach 98.8 million tons, the highest level in eight years.

May futures for corn delivery slipped $0.1475 (2.2 percent) to $6.68 per bushel as of 10:07 on CBoT, the biggest decline since November 12. May delivery for rice fell $0.425 (3.3 percent) to $12.625 per 100 pounds after it touched $12.55, the lowest level since October. May futures for soybean delivery went down $0.18 (1.3 percent) to $13.375 per bushel. The prices declined this week 5.4 percent, the biggest weekly decline since October 1. May delivery for wheat subtracted $0.14 (1.9 percent) to $7.265 per bushel, posting a weekly decline of 13 percent, the biggest drop since December 2008.

If you have any questions and comments on the commodities today, use the form below to reply.

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