Corn traded near the lowest level in almost three years, heading for a third weekly loss and the worst run of declines since February, on prospects for record global supplies.
Corn for December delivery was 0.3 percent higher at $4.6825 a bushel on the Chicago Board of Trade at 10:30 a.m. in Singapore, after dropping to $4.64 yesterday, the lowest for a most-active contract since Oct. 4, 2010. The most-active price has declined 1.6 percent this week and 33 percent this year.
Favorable weather conditions and advancing harvests have reaffirmed prospects for a significant rebound in northern hemisphere grain output after last year’s weather-damaged crops, the International Grains Council said yesterday. Global corn output will rise 9.7 percent to 942 million tons in 2013-2014, boosting end-season stockpiles, the council said in a report.
“Rebuilding global grain supply remains intact,” said Luke Mathews, a commodity strategist at Commonwealth Bank of Australia. U.S. corn conditions remain bearish for prices of corn and soybeans, he said.
U.S. farmers may harvest a record 13.95 billion bushels of corn, 29 percent more than the previous year when crops were hurt by drought, the U.S. Department of Agriculture estimates. Soybean output will rise 13 percent to 3.42 billion bushels.
Soybeans for November delivery gained 0.4 percent to $11.97 a bushel in Chicago, after falling to $11.89 yesterday, the lowest for the most-active contract since Jan. 31, 2012. Most-active prices are heading for a second weekly decline.
Wheat for September delivery advanced 0.3 percent to $6.60 a bushel in Chicago, set for the first weekly gain in three.
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