2014.08.1302:57:47UTC+00Corn drops behind expectations of bumper crop

Corn went through its first losing day this week after a report fueled outlook that output in the US will achieve a new record high.

Futures for corn with a delivery date in December declined by as much as 0.8% today to fall to a price per bushel of $3.6625. It was trading at $3.6825 late morning Singapore time on the Chicago Board of Trade. The contract had a loss as large as 2.8% yesterday, but recovered enough to close 0.2% higher due to investors assessing the crop’s supply and demand against figures from the US Department of Agriculture.

Corn futures have so far lost 18% this year behind expectations of higher stockpiles around the world due to a second bumper crop in the US. Yesterday’s report from the USDA revealed that the US’ domestic production is set to expand to its highest ever of 14.032 billion bushels with a majority, or 73%, of the current crop, in good or excellent condition.

Commodity sales director Michael Pitts from Sydney’s National Australia Bank Ltd. says that, “There’s not really much that can be done now that will negatively impact corn, we’re almost done and ready for harvest.”

The USDA revised up its estimate for corn yields in the US from July’s 165.3 bushels an acre to 167.4 bushels this month. Their data says that global inventories could reach 187.82 million metric tons by the end of the 2014-2015 season, lower than its previous forecast of 188.08 million, to be at its biggest since 2000.

Meanwhile, soybeans gained to a price per bushel of $10.6375 behind a 0.4% advance to rebound from its drop to $10.43 yesterday which made it the lowest among most active contracts in nearly four years. Wheat gained as well by 0.6% to end up with a value of $5.545 per bushel.