August 31, 2009
Good US crop forecast pulls down corn prices
Corn prices were facing a third monthly decline on speculation that US crop condition may improve.
The grain has lost 6.4 percent this month, after declining 20 percent during the previous two months on cool temperatures and abundant soil moisture.
About 70 percent of the corn crop was in good or excellent condition, the USDA said on August 23.
The USDA has predicted a crop of 12.761 billion bushels, 5.5-percent higher on-year and the second-largest ever.
Mexico, the world's second biggest corn buyer, may boost imports of the grain to a record as dry weather harms crops in its central and northern regions.
The USDA estimates Mexico will import nine million tonnes of corn in the 12 months starting October 1, up from 7.4 million tonnes in the current marketing year.
