Corn and soybeans traded near the lowest levels since 2010 in Chicago before a government report later today that may predict U.S. farmers will harvest the biggest crops on record.
U.S. production may total 13.93 billion bushels of corn and 3.79 billion bushels of soybeans, the most ever, according to a Bloomberg News survey before the U.S. Department of Agriculture updates its outlook at noon today in Washington. Most crops are in good or excellent condition after ample rain, USDA data show. Cool weather in the Midwest will prevent heat stress on crops through next week, according to MDA Weather Services.
"‘Rain makes grain’ is what the Americans are saying," David Sheppard, a managing director at Gainsborough, England- based Gleadell Agriculture Ltd., said in an e-mailed note today. "The U.S. Midwest is set for big crops and U.S. stockpiles are expected to climb."
Corn for December delivery added 0.2 percent to $3.935 a bushel at 6:49 a.m. on the Chicago Board of Trade after fluctuating between gains and losses. The price touched $3.915 yesterday, the lowest since July 2010. Soybeans for November delivery were little changed at $10.9325 a bushel, after earlier touching $10.92, the lowest since October 2010.
Global inventories of corn may rise to 184.47 million metric tons by the end of the 2014-15 season, the most since 2000, the Bloomberg survey showed. Soybean reserves at 84.69 million tons may be the highest ever.
Citigroup Inc. said soybeans may drop to $10.50 in the fourth quarter, while corn was seen at $3.70 a bushel, according to a report e-mailed yesterday.
Wheat for September delivery was unchanged at $5.485 a bushel, near yesterday’s four-year low of $5.4625. In Paris, milling wheat for November delivery was 0.6 percent higher at 182.75 euros ($248.70) a ton on Euronext.