US corn, soy head for weekly decline on bumper harvests
Corn and soy are seen to drop weekly on projections that rain last month will allow farmers in the US Midwest to produce more of the crops than the government forecast.
Before today, corn fell 4 percent this week and the oilseed slumped 6.9 percent. US corn output will total 13.01 billion bushels, according to Informa Economics Inc. The Department of Agriculture forecast 12.761 billion last month, up from an estimated harvest of 12.101 billion last year.
Toby Hassall, a research analyst at CWA Global Markets Pty in Sydney said Informa's bearish supply forecast were a "weight on the Chicago grains and oilseeds" but at this stage, he says the "market should be well aware of the bountiful new crop supply".
Soy for November delivery fell a fifth day and last traded down 0.1 percent at US$9.405 a bushel. Prices reached US$9.295 on September 3, the lowest level since July 30.
Normal freeze dates and rainfall could lift the US corn crop to a record 13.304 billion bushels, Memphis, Tennessee- based Informa said.
The soy crop will total 3.305 billion bushels and could reach 3.372 billion on favourable September weather, Informa said. The USDA is estimating a crop of 3.199 billion bushels and is scheduled to release its second survey-based production forecast on Sept. 11.
Hassall said very tight inventories and voracious Chinese import demand will make soy very sensitive to any adverse late season weather events.
US exporters sold 110,000 tonnes of soy to China and 174,000 tonnes of corn to unknown buyers for delivery in the marketing year that ends Aug. 31, the USDA said yesterday.
Wheat for December delivery in Chicago fell 0.2 percent to US$4.7775 a bushel at 11:40 a.m. Singapore time. The price touched US$4.7525 on September 3, the lowest level since December 5.
Before today, the grain had lost 3.3 percent this week after losing 22 percent in the previous three months because of slack demand for US supplies and rising global inventories.
