Corn Continues Decline on U.S. Harvest Expectation

Corn fell for the first time this week on expectation that production in the U.S., the world’s top grower, will reach the highest ever. Wheat also dropped.

The contract for December delivery lost as much as 0.7 percent to $3.415 a bushel on the Chicago Board of Trade and was at $3.435 by 2:13 p.m. in Singapore. Prices slumped to $3.3575 on Sept. 15, matching a four-year low reached on Sept. 11.

Futures tumbled 24 percent in the past year as farmers in the U.S. are set to harvest a record 14.395 billion bushels, the Department of Agriculture estimates. The nation’s harvest of soybeans will reach an all-time high of 3.913 billion bushels, the USDA forecast on Sept. 11. The anticipated 18.3 billion bushels of combined corn and soybeans production is set to overwhelm growers’ storage silos capable of holding only 13 billion bushels, according to the agency.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.