Soybeans Drop 1%, Corn Hits Four-Year Low On Forecast Of Bumper US Crops

Chicago soybeans slid 1% on Monday and corn fell to its lowest level in four years after a widely tracked crop tour of key U.S. growing areas forecast bumper harvests.

Wheat slid to a one-week low amid ample world supplies.

“The U.S. crop tour has estimated some big yields,” a Singapore-based grains trader said. “It is the continuation of the same theme for beans and corn in Chicago futures today. Everything is pointing to a big production out of the U.S.”

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 fell 1.1% to $9.62-1/4 a bushel, as of 0245 GMT, and corn CV1 lost 0.5% to $3.89 a bushel, the lowest since October 2020.

Wheat Wv1fell 0.4% to $5.26 a bushel, the weakest since Aug. 16.

The U.S. soybean harvest will be even bigger than the U.S. government’s record forecast, advisory service Pro Farmer said on Friday, though it forecast a smaller corn crop than the U.S. Department of Agriculture.

Pro Farmer forecast a soybean harvest of 4.740 billion bushels, which would be about 6% above the 2021 record and more than the 4.589 billion bushels forecast by the agriculture department.

The tour estimated record corn yields this week in top producers Iowa and Illinois, though crops in Minnesota were disappointing.

The Canada Industrial Relations Board ordered on Saturday a halt to work stoppages at the country’s largest railways, signalling an end to an unprecedented service disruption at both main freight rail carriers that threatened to hammer Canada’s export-driven economy.

Relatively strong demand for corn and a series of flash sales reported to China and unknown buyers have provided a market floor and suggested that lower prices are driving up demand.

Farmers continue to sell old-crop corn and soy to make room for the upcoming harvest and to generate cash flow, traders said.

Large speculators increased their net short position in CBOT corn futures in the week to Aug. 20, regulatory data released on Friday showed.

The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that non-commercial traders, a category that includes hedge funds, trimmed their net short position in CBOT wheat and increased their net short position in soybeans.

Tags: harvest, corn, soybeans, crop, Market, demand