27/07/2012 (Bloomberg) - Palm oil declined on speculation that rain in the U.S. Midwest may help soybean crops that have been hit by the worst drought in more than 50 years, reducing concern that global oilseed supplies will drop.

The October-delivery contract fell as much as 1 percent to 2,922 ringgit ($923) a metric ton on the Malaysia Derivatives Exchange, and ended the morning session at 2,935 ringgit in Kuala Lumpur. Futures are poised for a third weekly decline.

Corn for December delivery rose 0.5 percent to $7.9175 a bushel on the Chicago Board of Trade, erasing an earlier loss of 1.1 percent.

Wheat for September delivery lost as much as 2.2 percent to $8.835 a bushel in Chicago, before trading at $8.935. Futures jumped 43 percent since June 15.

Soybeans for November delivery declined as much as 2.1 percent to $15.8175 a bushel on the Chicago Board of Trade, before trading at $15.8825 at 2:44 p.m. Singapore time.

December-delivery soybean oil fell 0.8 percent to 52.57 cents a pound on the Chicago Board of Trade. Most-active soybeans, which have rallied 32 percent this year and touched a record on July 23, traded 1.4 percent lower at $15.9225 a bushel.

Rubber advanced after a decline in U.S. new home sales raised optimism the Federal Reserve may take additional measures to stimulate the economy, increasing demand for the commodity used in tires and gloves.