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Corn Prices Touch 3-Year Low as Production Improves

October 2, 2013
corn harvest combine
  

Oct. 2 (Bloomberg) -- Corn reached a three-year low in Chicago on an improved outlook for production in the U.S., where farmers are expected to gather a record crop.

The U.S. corn harvest may be 14.15 billion bushels, an all- time high, INTL FCStone Inc. said yesterday in a report. That’s 1.5 percent more than previously expected and above the U.S. Department of Agriculture’s 13.84 billion-bushel estimate. Farmers harvested 12 percent of corn crops in the main U.S. growing areas as of Sept. 29, USDA data show, easing concern cold or dry weather will hurt output this year.

"The harvest continues with very good results, something the trade has been noticing for a while," Matt Ammermann, a commodity risk manager at INTL FCStone in London, said in an e- mailed comment. "It seems like we are off to a good start, with yield results surprising most."

Corn for delivery in December fell 0.4 percent to $4.3725 a bushel at 6:42 a.m. on the Chicago Board of Trade, after touching $4.35, the lowest for a most-active contract since August 2010. Prices declined for four consecutive sessions, pushed lower as the USDA said Sept. 30 U.S. inventories last month were 824 million bushels, more than previously estimated and higher than analysts expected.

Soybeans for delivery in November rose 0.6 percent to $12.76 a bushel, rebounding from yesterday’s slide as low as $12.635, the lowest since Aug. 16. Inventories in the U.S. totaled 141 million bushels on Sept. 1, more than the 125 million bushels projected on Sept. 12, USDA data showed.

 

No Reports

Corn also fell as the USDA suspended reporting crop and livestock data amid the federal government’s partial shutdown. The National Agricultural Statistics Service will not issue reports while employees are furloughed from government duty, the USDA said Sept. 30. The suspension includes reports detailing world supply and demand for agricultural commodities.

"Concern regarding the shutdown of the U.S. government is mostly geared toward the USDA going dark," Vanessa Tan, an analyst at Phillip Futures Pte, said by e-mail today. If the USDA is unable to issue reports and inspect crops, it "could adversely affect overseas demand," she said.

Wheat for delivery in December was little changed at $6.8175 a bushel. In Paris, milling wheat for delivery in November rose 0.7 percent to 191.50 euros ($258.97) a metric ton on NYSE Liffe.

 

--Editors: Dan Weeks, Sharon Lindores.

 

To contact the reporters on this story: Whitney McFerron in London at wmcferron1@bloomberg.net; Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net

 

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.

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RELATED TOPICS: Corn, Marketing

 
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