Corn futures declined, snapping the biggest rally in seven weeks amid speculations that the US government would boost its outlook for the crop. Wheat and soybeans dropped.
The output will rise to a high 14.54 billion bushels of corn before the US Department of Agriculture updates its estimate on October 10. The forecast was 14.395 billion. Through yesterday, the prices dropped 19% this year on the outlook of abundant global supplies.
Bloomberg quoted National Australia Bank Ltd agribusiness economist Phin Ziebell as having said, “All eyes will be in the USDA report. The latest indications show that the harvests continue to perform strongly.”
December delivery corn futures dropped 0.1% to $3.34025 per bushel on the Chicago Board of Trade. The price declined more than 0.9% earlier. The grain gained 6.2% in the last five sessions, the biggest rally from August 15.
The USDA forecast global inventories to rise to a high of 15 years. Corn hit $3.1825 on October 1, the lowest for the most active contract from September 22 2009.
November delivery soybean futures dropped 1.15 to 9.30 per bushel. Through yesterday, there was a slump of 27% in the oilseed this year. US production is expected to rise 3.99 billion bushels, more than the USDA forecast of 3.913 billion last month.
December delivery wheat futures dropped 0.1% to $5.0575 per bushel. The price rose in the last five sessions, the biggest rally from August 6. Through yesterday, there was a 16% drop of the grain this year.
Reuters quoted Ziebell as having said, “Wheat is starting to come down a little bit but it has sustained the upward trend quite well and it looks like further price falls are less likely.” He added that corn fundamentals are still bearish and there has to be “divergence in corn and wheat prices”.
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