Corn traded near a three-year low in Chicago as harvesting progressed in the U.S., the world’s biggest producer, amid speculation the government will increase its crop estimate this week.
The U.S. harvest may reach a record 14.03 billion bushels, 1.3 percent more than the Department of Agriculture’s most recent prediction in September, according to a Bloomberg survey of analysts. The USDA will update its forecasts on Nov. 8. U.S. farmers harvested 73 percent of corn in the main growing areas as of Nov. 3, up from 59 percent a week earlier, the USDA said.
"Yields are better than had been expected," economist Dennis Gartman said in his daily Gartman Letter. "Corn and soybean crops will be manifestly larger this time than reported in the September USDA crop report."
Corn for delivery in December lost 0.1 percent to $4.26 a bushel at 6:48 a.m. on the Chicago Board of Trade. The grain touched $4.2525, matching yesterday’s intraday low that was the cheapest price for a most-active contract since Aug. 26, 2010. Futures slumped 39 percent this year on an outlook for rebounding U.S. production after drought hurt crops last year.
Soybeans for delivery in January gained 0.3 percent to $12.5975 a bushel, climbing for a second day. The most-active contract declined 11 percent this year. U.S. production of the oilseed may be 3.215 billion bushels, 2.1 percent more than previously estimated, according to Bloomberg’s survey.
Wheat for delivery in December rose 0.3 percent to $6.645 a bushel. The grain earlier slid as far as $6.62, matching yesterday’s low, which was the cheapest for a most-active contract since Sept. 25. In Paris, milling wheat for delivery in January was unchanged at 202.75 euros ($273.53) a metric ton on NYSE Liffe.
--Editors: Dan Weeks, John Deane.
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