A farmer plants corn in Dover, Illinois. Farmers are expected to increase corn sowing by 4.3 percent to 38.79 million hectares this year, the most in 75 years, the US Department of Agriculture said on March 30. Daniel Acker / Bloomberg

Corn dropped for the first time in four sessions as planting in the United States, the world's biggest exporter, progressed faster than last year's pace, while oil prices hovered below $105 a barrel on Tuesday in Asia for a second day amid light trading volume because of the May Day holiday.

About 53 percent of the corn crop was planted by Sunday, up from 12 percent a year earlier, the US Department of Agriculture said on Monday. The average for the previous five years is 27 percent. The percentage planted is second only to the record for the 17th week of the year of 68 percent in 2010.

"Corn plantings have been pretty quick so far this season and with the amount of acres planted to corn, that's potentially bearish for the market," said Victor Thianpiriya, a commodity analyst at Australia & New Zealand Banking Group Ltd. "If the weather behaves itself or is relatively benign over the next few months, it's potentially bullish for yields given how early the corn crop is being planted relative to previous seasons."

Corn for July delivery fell 0.7 percent to $6.2975 a bushel on the Chicago Board of Trade at 10:59 am in London. Prices declined 1.5 percent in April, a second straight monthly drop, on speculation that rapid US planting will boost yields.

Farmers are expected to increase corn sowing by 4.3 percent to 95.864 million acres (38.79 million hectares) this year, the most in 75 years, the USDA said on March 30, after surveying growers.

Soybeans for July delivery fell 0.6 percent to $14.97 a bushel, snapping a five-session rally. Prices have climbed 24 percent this year as dry weather in Argentina and Brazil harmed crops. About 12 percent of the US soybean crop was planted, compared with the previous five-year average of 5 percent, the USDA said.

About 74 percent of the spring-wheat crop was seeded by Sunday, the US department said. The average for the date for the previous five years was 32 percent. Plant emergence rose to 30 percent from 18 percent a week earlier and 8 percent on average the prior five years, the agency said.

July-delivery wheat dropped 1.2 percent to $6.465 a bushel in Chicago. Milling-wheat trading on the NYSE Liffe in Paris was closed on Tuesday because of a holiday.

Benchmark oil

Benchmark oil for June delivery was up 3 cents to $104.90 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract lost 6 cents to settle at $104.87 in New York on Monday.

Brent crude for June delivery was steady at $119.47 per barrel in London.

Many traders in the region took the day off as most markets were closed for the Labor Day holiday.

Oil prices have shadowed stock markets during most of the last month, trading sideways as investors look for clues about global economic growth and crude demand.

Traders are closely eyeing the effects of Europe's debt crisis on economic activity. Spain said on Monday its economy slipped into recession in the first quarter as the unemployment rate jumped to 24 percent.

Some analysts expect crude prices to rise as recovery in the US, the world's largest oil consumer, bolsters demand.

"So far we are seeing the US crawling out of its hole," said Carl Larry, a trader and analyst with Oil Outlooks and Opinions. "There's not a lot to stop the bull run from here unless recession comes back to rear its head."

(China Daily 05/02/2012 page17)