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U.S. corn trades near 4-year low on record crop outlook

Published 09/17/2014, 06:27 AM
U.S. corn futures trade near 4-year low on upbeat crop outlook
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Investing.com - U.S. corn futures declined on Wednesday, as ongoing expectations of record yields across much of the U.S. grain belt drove prices lower.

On the Chicago Mercantile Exchange, U.S. corn for December delivery lost 0.78 cents, or 0.23%, to trade at $3.4263 a bushel during U.S. morning hours.

A day earlier, corn prices tacked on 0.6 cents, or 0.22% to end at $3.4360.

Futures sank to a 49-month low of $3.3560 a bushel on September 15 after the U.S. Department of Agriculture estimated that the U.S. corn harvest will hit a record-high 14.39 billion bushels, up from a projection of 14.03 billion in August.

Global ending stocks were forecast to exceed 2 billion bushels for the first time in a decade.

Meanwhile, U.S. wheat for December delivery shed 1.02 cents, or 0.21%, to trade at $4.9538 a bushel.

A day earlier, wheat prices hit $4.9100 a bushel, the weakest level since July 2010, before settling at $4.9620, down 4.4 cents, or 0.9% as concerns over weak demand and plentiful global supplies weighed.

The USDA said on September 11 that U.S. ending stocks were forecast at 698 million bushels, up from a previous estimate of 663 million, due in large part to weak export demand for U.S. supplies.

According to the agency, global wheat inventories at the end of the 2014-15 season will total 196.38 million metric tons, up from 192.96 projected in August.

Elsewhere on the CBOT, U.S. soybeans for November delivery inched up 3.03 cents, or 0.31%, to trade at $9.8363 a bushel.

A day earlier, the November soybean contract lost 8.6 cents, or 0.88%, to close at $9.8060 a bushel.

Prices of the oilseed slumped to a four-year low of $9.6940 on September 11 after the USDA estimated this fall's U.S. harvest would reach an all-time high of 3.913 billion bushels.

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

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

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