After the government of the U.S. raised their estimates for worldwide output and stockpiles, corn has fallen down for a 4th day in 4 months for trading at the lowest level. And, after entering into a bear market, wheat has rebounded from a 4 month low. For delivery in the month of December, corn has lost 0.3% to $4.405 a heap on Chicago Board of Trade. It was at $4.4125 in Singapore by 3:10 p.m. Prices have dropped yesterday to $4.39, the lowest since February 11 for the most active contract like this.
Yesterday, the Department of Agriculture has reported that before the year 2015, the world corn reserves’ harvest has great chances to climb up to 182.7mn metric tons, which is the highest of all in over 15 years of history. Analysts, according to a Bloomberg survey, have expected on average 182.2 million. As per the forecast last month, USDA raised the estimates of global production to 981.12mn tons from 979.08mn.
An analyst, Graydon Chong at Rabobank International from Sydney stated that the world production for corn is almost up by another two million tons, especially in the EU, Russia, the Black Sea, and Ukraine. He further added that a slight stock building is evident. USDA stated that the EU would be harvesting 65.25mn tons as compared to 64.65mn forecast made during the month of May. It said that the production of corn in the former Soviet Union would be increasing total 44.21 million tons from the forecasted quantity of 42.71 million in the month of May.
The USDA said that the world’s largest exporter and grower inventories in the U.S will be reaching 1.726billion bushels on August 31st 2015. In the Bloomberg survey, the reserves were estimated at 1.709-billion bushels.
Wheat delivery for the month of July has risen 0.6% to $5.925 per bushel after it dropped $5.8775, which is the lowest for the most active contract like this since Feb. 13. Yesterday, the futures settled at $5.8925 slumping twenty percent on May 6th from $7.39 that is a 14month closing high. That decline announces a bearish market.
The soybeans that are scheduled for delivery in the month of November has advanced about 0.3 percent to $12.2475 per bushel.