Corn futures extended their losses in Chicago today, as traders awaited a report by the US Department of Agriculture expected to show that a record US yield will surpass last month’s estimates. Soybeans climbed.
US farms may produce 14.556 billion bushels of corn and 3.969 billion bushels of soybeans this year, all-time highs and beating prior USDA estimates for 14.475 billion and 3.927 billion bushels, according to a Bloomberg survey. The USDA is expected to publish new projections on Monday. Global stockpiles of both crops will also surpass earlier projections, the survey showed.
“Improved U.S. and global supply continues to pressure ag prices. 2014 marked a second consecutive banner year for U.S. agricultural production, with farmers harvesting record corn and soybean crops,” Bloomberg quotes Morgan Stanley analysts as saying.
December-settlement corn declined 0.2% to $3.6675 per bushel at 5.46 am on the Chicago Board of Trade. The commodity dropped 2.5% last week after soaring 17% in October. Corn has plunged 13% this year.
January-delivery soybeans added 0.5% to $10.42 per bushel, after declining 1.2% last week. The grain has bounced back almost 15% after reaching a four-year low on October 1 as demand for US shipments increased and some parts of the country suffered export hurdles.
According to Reuters, weather conducive for harvesting is applying downward pressure on prices, with projections showing that farmers will manage to catch up with their traditional schedule.
Wheat futures continue to drop as US exporters face stiff competition from an export market filled with global inventories.
European traders said on Friday that the state grains board of Iraq purchased 200,000 tonnes of hard wheat from Canada and Australia. According to reports, US offered its wheat at around $20 per tonne higher than Canada’s price.
Bloomberg reported that the price of wheat for settlement in December dropped 0.3% to $5.1275 per bushel in Chicago.
To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Jonathan Millet at firstname.lastname@example.org