U.S. Corn and Soy Futures Sink to New Four-Year Lows

September 24th, 2014

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Category: Grains, Oilseeds

Soybeans take a hit(Wall Street Journal) – U.S. corn futures settled at a more than four-year low Tuesday amid forecasts for near-perfect weather as harvest advances and also due to mounting evidence that farmers will bring in bumper crops this fall.

Soybeans and wheat also declined.

Corn prices extended losses for the fifth-straight session, nearing prices last seen five years ago, as farmers report record yields from southern sections of the nation’s Corn Belt.

Mild temperatures and limited rainfall through the end of September will further aid harvest progress, private forecasters Commodity Weather Group LLC said in a report Tuesday.

“The weather is going to be great for the next 10 days,” said Dennis Smith, a commodity broker at Archer Financial Services in Chicago. “That corn is going to dry in the fields and give us a high quality and high yielding crop.”

The U.S. Department of Agriculture released a report Monday showing the corn crop remains in good health, with roughly 74% of U.S. corn in good or excellent condition as of Sunday, unchanged from last week. A year ago, only 55% of corn earned top ratings.

Corn futures for December delivery at the Chicago Board of Trade dropped 4 3/4 cents, or 1.4%, to $3.25 1/2 a bushel, the lowest closing price since June 29, 2010. Earlier in trade, prices dropped as low as $3.24 3/4 a bushel—had they fallen another half-cent, it would have been the lowest level since September 2009.

Soybean prices also hit a new four year low, despite slightly poorer crop conditions reported by the government. The USDA said ratings for the oilseeds had dipped one percentage point, likely as a result of mild frost damage from cold temperatures seen last week, according to analysts.

Still, soybean ratings pegged at 71% good or excellent, compared with 50% last year, weighed on prices, along with reports of huge yields, analysts said.

CBOT November soybean futures slid 2 cents, or 0.2%, to $9.36 1/4 a bushel, the lowest closing price since June 10, 2010.

Wheat futures also declined, weighed down by falling corn and soybean prices, and expectations for huge global stockpiles of the grain.

CBOT December wheat declined 3/4 cent, or 0.2%, to $4.76 a bushel.

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