Corn Extends Decline to Near 4-Week Low on USDA ForecastJeff Wilson and Whitney McFerron
Corn fell for a second day after the U.S. Department of Agriculture raised its outlook for the domestic harvest. Soybeans and wheat also dropped.
U.S. farmers will collect 13.843 billion bushels of corn in 2013, the most ever and up from 13.763 billion estimated last month, government figures showed yesterday. Domestic output will rise 28 percent from last year’s drought-reduced harvest, helping send global inventories to a 12-year high. Prices tumbled 34 percent this year.
“Harvest data from private sources support ideas of good corn production this year as yields have generally come in at or above farmer and trade expectations,” Jack Scoville, a vice president for Price Futures Group in Chicago, said in an e-mailed report. “World data showed that there will be plenty of corn available.”
Corn futures for December delivery dropped 1.6 percent to close at $4.59 a bushel at 1:15 p.m. on the Chicago Board of Trade, after falling 1.3 percent yesterday. Prices declined for a second straight week.
Soybean futures for delivery in November fell 1 percent to $13.815 a bushel on the CBOT. The loss pared this week’s gain to 1 percent, the sixth straight and the longest advance since June 2009.
Areas of the Midwest, including the top U.S. growers Iowa and Illinois, may get as much as 1.7 inches (4.3 centimeters) of rain the next seven days, aiding the filling of soybean pods with bigger beans, National Weather Service data show.
Global production of oilseeds including soybeans, canola and sunflower seeds this year is expected to rise 4.8 percent to 495.1 million metric tons from 472.6 a year earlier, boosting global inventories 17 percent before next year’s harvest, the USDA said yesterday.
“The Midwest rains should halt the decline in U.S. soybean production and may add a few bushels in some fields,” Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis, said in a telephone interview. “The world supply of oilseeds is going to be huge.”
Wheat futures for December delivery fell 1.8 percent to $6.415 a bushel, capping a second weekly decline.
The USDA raised its estimate for global production 0.5 percent from last month to a record 708.89 million metric tons.