Corn sags to 38-month low
Corn futures fell Monday to a fresh 38-month low and soybeans dropped on speculation that the U.S. Department of Agriculture will raise domestic production estimates for both crops in a report for release late this week amid signs of declining demand for livestock feed. Wheat declined.
Private forecasters Informa Economics Inc. and INTL FCStone both said last week that U.S. corn output would outpace earlier estimates. Informa projected production at 14.223 billion bushels, while FCStone said output would total 14.367 billion bushels. The USDA in September forecast output at 13.843 billion bushels. The agency will update its supply-and-demand estimates in a report Friday for the first time in two months after skipping its normal October report due to the partial government shutdown.
Informa estimated soybean production at 3.298 billion bushels, up from the government's projection of 3.149 billion bushels. FCStone said output would total 3.27 billion bushels.
Chicago Board of Trade corn futures for December delivery fell one cent, or 0.2%, to $4.26 1/4 a bushel, the lowest closing price for a front-month contract since Aug. 31, 2010. Soybean futures for November delivery on the CBOT fell two cents, or 0.2%, to $12.64 a bushel.
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About 10.144 million head of cattle were on feed on Oct. 1, down 7.7% from the prior year, the government said Thursday. Fewer animals in feedlots will mean less demand for corn, the main ingredient in livestock feed, and for meal made from soybeans.
Wheat futures for December delivery declined five cents, or 0.8%, to $6.62 3/4 a bushel in Chicago.
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(END) Dow Jones Newswires
November 04, 2013 14:43 ET (19:43 GMT)
DJ Corn Falls to Fresh 38-Month Low, Soy Drops on Rising Output->copyright