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U.S. grains hover close to 4-year lows on supply outlook

Published 09/18/2014, 07:35 AM
U.S. corn futures trade close to 4-year low on supply outlook
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Investing.com - U.S. corn, soy and wheat futures traded near their lowest levels in more than four-years on Thursday, as ongoing optimism over domestic and global grain supplies weighed.

On the Chicago Mercantile Exchange, U.S. corn for December delivery eased up 0.17 cents, or 0.05%, to trade at $3.4138 a bushel during U.S. morning hours.

A day earlier, corn prices lost 2.0 cents, or 0.58% to end at $3.4160.

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. 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 added 1.27 cents, or 0.13%, to close at $9.8388 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.

Elsewhere on the CBOT, U.S. wheat for December delivery shed 1.27 cents, or 0.26%, to trade at $4.9738 a bushel.

Wheat prices hit $4.9100 a bushel on Tuesday, the weakest level since July 2010, 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.

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

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