Corn, Beans Drop on Tour Data; Wheat Lower After IGC Raises Outlook
Corn and beans closed lower on Friday amid record crops in the U.S. Midwest, while wheat declined after the International Grains Council cut its outlook for global production.
Corn yields in the U.S. are projected at 170.2 bushels an acre, and total production is expected to be a record 14.7 billion bushels, according to participants on the annual Pro Farmer Crop Tour. The estimate is still lower than the 175.1 bushels an acre and a 15.1 billion-bushel production estimate made by the Department of Agriculture earlier this month. The prior output record was 14.2 billion bushels set in 2014, government data show.
Soybean ouput is pegged at a record 4.09 billion bushels on yields of 49.3 bushels an acre, topping USDA estimates made August 12 of 4.06 billion bushels and 48.9 bushels an acre, tour participants said.
Corn futures for December delivery lost 6¾¢ to $3.25¼ a bushel on the Chicago Board of Trade.
Soybean futures for November delivery dropped 8½¢ to $9.67 a bushel. Soy meal futures lost $3.50 to $315.30 a short ton, and soy oil rose 0.02¢ to 33.34¢ a pound.
Wheat futures fell to the lowest level in a decade in intraday trading Friday after the International Grains Council raised its projection for global output in the 2016-2017 marketing year.
World wheat producers will harvest 743 million metric tons of wheat this year, the IGC said in a report yesterday. That’s up from a prior oulook for 735 million tons and the prior year’s 736 million tons.
The increase comes on the heels of large harvest in both the Commonweath of Independent States and the U.S. Consumption is pegged to rise by 5 million tons, but inventories will still total 229 million tons, up a million tons from the July outlook. The IGC noted that low wheat prices likely will mean increased use of the grain in livestock feed, however, which should reduce carryout globally.
Wheat futures for December delivery on the Chicago Board of Trade fell 17½¢ to $4.06¼ a bushel, and Kansas City futures lost 16¢ to $4.16¼ a bushel.