Corn Nears 4-year Low as Farmers Harvest Record Crop

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Corn Nears 4-year Low as Farmers Harvest Record Crop

On Wednesday, US corn dropped for the first time this week as farmers began harvesting the crop deemed to be the largest on record.

December delivery US corn lost 0.23% to $3.4263 per bushel in the morning hours on the Chicago Mercantile Exchange.

According to NASDAQ, corn prices had gained 0.22% or 0.6 cents ending at $3.4360 on Tuesday. Futures fell to a low of 49 months on Sept 15 trading at $3.3560 after the US Department of Agriculture estimated a record high corn harvest of 14.39 billion bushels, up from August’s projection of 14.03 billion.

Global ending stocks are expected to top 2 billion bushels, first time in a decade. December delivery for US wheat dropped 0.21% or 1.02 cents trading at $4.9538 per bushel.

On Tuesday, wheat prices fell to $4.9100 per bushel, the lowest level from July 2010, before hitting $4.9620, 0.9% down or 4.4 cents on concerns of the weak demand and plentiful supplies globally.

Bloomberg quoted economist Dennis Gartman as having written, “The weather remains nearly perfect. The harvest that is beginning in the South can and will be sped along.”

November delivery Soybeans gained 0.2% to trade at $9.83 per bushel. The November Soybean contract had lost 0.88% or 8.6 cents a day earlier to close at $9.8060 per bushel. On Sept 11, the prices dropped to $9.695, the weakest since Jul. 2010.

Soybean ending stocks are expected to be more than triple in the marketing season of 2014-15 to 475 million bushels, the highest since the season of 2006-07.

Oilseed has dropped 24% this year, and the USDA expects farmers to harvest a record 3.913 billion bushels of the crop.

According to the USDA, global wheat inventories for the 2014-15 season will reach 196.38 million metric tons, which is higher than August’s projection of 192.96 million metric tons.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com