US soybean and grain futures closed lower on Wednesday, with corn dropping to the least in four years amid reports from the government and the private sector on expected massive harvests.
According to The Wall Street Journal, corn futures dropped 4.1% for September delivery, the biggest drop in percentage since June 30. This comes due to pressure by reports from Lanworth and Allendale Inc estimating high yields that could translate to bigger harvests.
Wheat futures dropped significantly with prices increasing losses after top importer, Egypt, was not offered any US supplies in a tender. The US dollar was bearish with international buyers getting cheaper grain from shippers in the Black Sea and European Union regions.
Reuters quotes Mike Zuzolo, an analyst at Global Commodities Analytics to have said, “We’re pricing in bigger crops before the next report.” This was in reference to the monthly demand and supply report of US Agriculture Department, due September 11.
Rich Nelson, Allendale Inc analyst said that the crops boom is attributed to the mild weather in summer. He added, “Across the board, the numbers were impressive. This year’s pollination was one of the coolest of the past 30 years.”
Chicago Board of Trade December corn dropped 11-3/4 cents, a 3.2% drop to $3.52 a bushel, slightly above the $3.51-1/4 contract low in the last seconds of trading. Corn dropped to $3.40-1/2 on continuous chart, the lowest since June 2010, and posted the largest daily declines in the last two months.
Benchmark November soybeans dropped 12 cents to $10.20, cutting losses after dropping to a $10.12-1/2 contract low. CBOT wheat, December delivery was 3.5% lower or 19-1/4 cents at $5.35-3/4, close to its $5.35 contract low. Wheat declined on the continuous chart for three straight sessions, the worst declines since April 2013.
Zuzolo said, “Wheat demand is not showing up and the market is seeking new lows to find demand.”
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