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U.S. corn falls to lowest since September 2009 on record crop

Published 10/01/2014, 05:58 AM
U.S. corn futures slump to 5-year low on record crop prospects
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Investing.com - U.S. corn futures slumped to a five-year low on Wednesday, after the U.S. Department of Agriculture forecast larger-than-expected stockpiles of the grain.

On the Chicago Mercantile Exchange, U.S. corn for December delivery fell to a session low of $3.1840 a bushel, a level not seen since September 2009.

Prices recovered to last trade at $3.1913 a bushel during U.S. morning hours, 1.48 cents lower than Tuesday's closing price of $3.2060.

The U.S. Department of Agriculture said in its closely-watched quarterly report on Tuesday that U.S. corn stockpiles on September 1 were 1.236 billion bushels, above expectations for 1.191 billion and up from a forecast of 1.181 billion in September.

Corn prices lost 12.5% in September as expectations of record yields across much of the U.S. grain belt drove prices lower.

Meanwhile, U.S. soybeans for November delivery traded at $9.0813 a bushel, down 4.87 cents from $9.1320 on Tuesday. The November soybean contract hit a four-year low of $9.0540 a bushel on September 29.

The USDA pegged September 1 stocks at just 92 million bushels in its quarterly report released Tuesday, below expectations for 130 million.

The agency also raised its estimate for 2013 soybean production to 3.36 billion bushels, up 69.2 million bushels from the previous estimate.

Prices of the oilseed tumbled 10.9% in September, as ongoing expectations for a record U.S. harvest weighed.

Elsewhere on the CBOT, U.S. wheat for December delivery shed 2.7 cents to trade at $4.7450 a bushel. Wheat prices slumped to a four-year low of $4.6620 on September 25.

The USDA said on Tuesday that domestic wheat supplies in storage rose to 1.914 billion bushels, above analysts' expectations of 1.894 billion bushels and up from 1.87 billion bushels last year.

Prices of the grain declined 15% last month, as concerns over weak demand and plentiful supplies weighed.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.

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