March 10, 2010

US grain prices fall ahead of key crop report

Grain prices fell Tuesday (March 9), a day before a USDA report that will revise production estimates for both US and foreign farmers.

"It's pre-crop report jitters," said Richard Feltes, senior vice president and director of commodity research at MF Global.

Feltes predicted the USDA will say that more soy and corn were produced in the Southern Hemisphere than previously forecast. Additional supply hurts prices in the futures market.

The report will also give an update on US production from 2009 plantings. The USDA does not typically update previous year's output this late, which has created some uncertainty and volatility heading into the report.

Meanwhile, May soy fell half a cent to settle at US$9.475 a bushel. Corn for May delivery dropped 6 cents to US$6.69 a bushel, while wheat fell 5.5 cents to US$4.895 a bushel.