Aug 23, 2014
Home| Tools| Events| Blogs| Discussions Sign UpLogin

Corn Extends Decline as Record U.S. Harvest Seen Boosting Supply

February 24, 2014
corn field
  

Corn dropped the most in more than five weeks on mounting concern that supplies will expand as production jumps to a record for a second year in the U.S., the world’s largest exporter. Soybeans and wheat advanced.

Production of U.S. corn harvested after Sept. 1 will reach 13.985 billion bushels as yields jump 4.1 percent, the government said Feb. 21. Domestic stockpiles on Aug. 31, 2015, will reach 2.111 billion bushels, 43 percent more than a year earlier. Export sales of grain from the 2013 crop fell 46 percent to 691,439 metric tons in the week ended Feb. 13, from a week earlier, U.S. Department of Agriculture said Feb. 21.

"The market is reflecting a growing supply on top of a record crop last year," Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis, said in a telephone interview. "Export demand declined significantly, and now we will have to wait to see if lower prices improve buying interest."

Corn futures for May delivery fell 1.1 percent to $4.54 a bushel at 9:56 a.m. on the Chicago Board of Trade, heading for the biggest drop for the most-active contract since Jan. 15. Prices through Feb. 21 were down 46 percent from an all-time high of $8.49 in August 2012 as rising output boosted inventories.

The interim government of Ukraine, the world’s third- largest corn exporter, said the country needs $35 billion of aid to avoid default as it issued an arrest warrant for fleeing ex- President Viktor Yanukovych for his role in last week’s deadly clashes between protesters and government forces. Ukraine will be the sixth-largest wheat exporter, according to the USDA.

Ukraine exported 606,600 tons of corn in the week ended Feb. 23, up from 494,400 a week earlier, according to APK-Inform Agency today.

"Grain flows should continue now as the country gets back to its normal working schedules," Matt Ammermann, a risk management consultant at INTL FCStone in London, said in a report today.

Soybean futures for May delivery advanced 1.1 percent to $13.745 a bushel on the CBOT, after touching $13.765, the highest price since Sept. 13.

Wheat futures for delivery in May gained 0.5 percent to $6.0875 a bushel in Chicago.

 

See Comments

RELATED TOPICS: Corn, Marketing, USDA

 
Log In or Sign Up to comment

COMMENTS

No comments have been posted



Name:

Comments:

Receive the latest news, information and commentary customized for you. Sign up to receive the AgWeb Daily eNewsletter today!.

 
 
Enter Zip Code below to view live local results:
bayer
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions