Corn futures slid the most in three weeks after the U.S. Department of Agriculture said production in 2014 will reach an all-time high and expand a surplus before next year’s harvest. Wheat fell, and soybeans climbed.
Farmers will see corn yields jump 4.1 percent this year, producing a record 13.985 billion bushels, the USDA said today in a report. Domestic inventories on Aug. 31, 2015, will reach 2.111 billion bushels, the highest since 2005 and 43 percent larger than the 1.481 billion projected for a year earlier, the government said. Prices are down 33 percent in the past year.
The stockpile estimate “was bigger than people expected,” Tomm Pfitzenmaier, a partner at Summit Commodity Brokerage in Des Moines, Iowa, said in a telephone interview. “You’re going to see things sag again.”
Corn futures for May delivery dropped 0.7 percent to close at $4.59 a bushel on the Chicago Board of Trade, the biggest decline for a most-active contract since Jan. 29. While the grain has tumbled from a record $8.49 in August 2012, prices are up 8.8 percent this year amid signs of rising demand.
Wheat futures for May delivery slid 1.3 percent to $6.055 a bushel on the CBOT, the first drop since Feb. 12. U.S. inventories will rise to 587 million bushels before the 2015 harvest, compared with 558 million projected for June 1, the government said today.
Soybean futures for May delivery advanced 0.9 percent to $13.6025 a bushel in Chicago, capping a 2.7 percent gain for the week.