Corn traded near a three-year low in Chicago on expectations that a government report this week will show bigger supplies of the grain than previously estimated in the U.S., the world’s largest producer.
The national crop may be a record 14.03 billion bushels, according to a Bloomberg survey before the U.S. Department of Agriculture releases its report Nov. 8. That would be 1.3 percent more than forecast in September, the agency’s most recent estimate before the partial U.S. government shutdown canceled last month’s report. The U.S. corn harvest was 59 percent complete as of Oct. 27, USDA data show.
"Prices are being more heavily influenced again by the prospect of a high global corn surplus," Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, said in a report e- mailed today. "This is looking increasingly likely in view of positive U.S. harvest results."
Corn for delivery in December slipped 0.2 percent to $4.2625 a bushel at 7:02 a.m. on the Chicago Board of Trade, poised for a fourth straight retreat. In the prior session, futures reached $4.2575, the lowest level since August 2010. Prices fell 2.9 percent last week, a second straight drop.
INTL FCStone Inc. and Informa Economics Inc. both raised their outlook for U.S. production on Nov. 1 to 14.37 billion bushels and 14.22 billion bushels, respectively. A bigger U.S. corn crop will spur a rebound in world stockpiles to 155.19 million metric tons by the end of the 2013-14 season, up from 122.59 million tons a year earlier, Bloomberg’s survey showed.
Prospects also are improving for South American crops, as rain in Argentina’s Pampas region aids corn and soybean planting, the Rosario Grains Exchange said Nov. 1. Southern Brazil and northern Argentina will be dry until showers arrive Nov. 8, AccuWeather Inc. said today.
Soybeans for delivery in January rose 0.5 percent to $12.575 a bushel, rebounding from a weekly loss, and wheat for delivery in December advanced 0.3 percent to $6.70 a bushel. In Paris, milling wheat for delivery in January dropped 0.2 percent to 204.25 euros ($275.94) a ton on NYSE Liffe.