October 1, 2010
US corn futures headed for biggest weekly loss in nine months
US corn futures dropped for a second day, set for the biggest weekly decline in almost nine months, after the US said pre-harvest inventory expanded to the highest level since 2006.
December-delivery corn fell as much as 1.7% to US$4.873 a bushel in Chicago and traded at US$4.875. Corn had tumbled 6.5% this week, the steepest decline for a most-active contract since January 15.
Inventories from last year's harvest were at 1.708 billion bushels (43.38 million tonnes) as of September 1, up from 1.673 billion bushels a year earlier, the USDA said.
"The USDA's corn stocks data was bearish, coming well above expectations," Commonwealth Bank of Australia said. "This therefore implies that US corn demand fell significantly in the three months to September."
December-delivery wheat was little changed at US$6.745 a bushel and had lost 6.3% this week, the worst decline since May 14. The most-active contract advanced 40% in the third quarter, the best performance in three years.
Inventories of all wheat in the US, the world's largest exporter, totaled 2.46 billion bushels as of September 1, up 11% from a year ago, the USDA said.
The US will also harvest 2.224 billion bushels of wheat in the marketing year that began June 1. This is 1.8% less than what the agency estimated on September 10.
Soy for November delivery dropped as much as 0.7% to US$10.995 a bushel and last traded at $11.028. The contract has lost 2.1% this week, the most since August 20.
Exporters in the US, the world's largest soybean grower and exporter, sold 1.74 million tonnes in the week till September 23, up from 1.08 million tonnes a week earlier, the USDA said.
