Corn is heading for the worst year since at least 1960 and wheat is poised for the biggest annual loss in five years as global production climbs to a record.
Futures for corn plunged 39 percent this year to $4.23 a bushel by 11:35 a.m. in Singapore today as wheat dropped 23 percent to $6.005 a bushel. Soybeans fell 7.1 percent to $13.10.
Corn is the worst performer among 24 commodities tracked by the Standard & Poor’s GSCI gauge. U.S. farmers harvested a record crop, boosting global output of grains to an all-time high, says the International Grains Council. Cereal costs tracked by the United Nations fell 22 percent this year and food prices declined 13 percent from their record in February 2011.
“Production stepped up a few gears” because of higher prices last year and favorable growing conditions, said Jonathan Barratt, the chief executive officer of Barratt’s Bulletin in Sydney.
“Everyone started to plant and all of a sudden we’ve got building stocks.”
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