Corn futures extended a slump to a 50-month low as waning prospects for frost damage this week boosted speculation that crop yields will be bigger than the government forecast in the U.S., the world’s top producer.
Farmers will harvest 14.276 billion bushels this year, more than the U.S. Department of Agriculture’s August forecast for a record 14.032 billion, a Bloomberg survey of analysts and traders showed. The USDA will update its estimates on Sept. 11. Risk of a damaging freeze this week is “very low,” Commodity Weather Group said today.
“The old adage is that big crops get bigger,” Matthew Bennett, the owner of Windsor, Illinois-based Bennett Consulting, said in a telephone interview. “People are not worried about running out, though demand is pretty solid.”