Corn Drops to Lowest Since 2010 as U.S. Harvest Seen at Record

Sep 04, 2014 2:52 pm ET

Sept. 4 (Bloomberg) -- Corn and soybean futures dropped to the lowest in four years as crop conditions in the U.S. improved, boosting expectations that production this year will be the highest ever.

About 74 percent of corn and 72 percent of soybeans were rated in good to excellent condition as of Aug. 31, the best for the week since 1994, the U.S. Department of Agriculture said Sept. 2. INTL FCStone Inc. predicts output will top the USDA’s Aug. 12 estimate. August field samples in Illinois, Ohio, Indiana and Iowa, representing 45 percent of forecast corn output, showed higher yields than last year, according to August inspections on the 22nd annual Pro Farmer crop tour.

“We’re going to find that there’s some really big yields,” Brian Hoops, president of Midwest Market Solutions in Springfield, Missouri, said in a telephone interview. “Once everything starts rolling here, we’ll expect even more pressure against corn and soybeans.”

Corn futures for December delivery fell 1.6 percent to close at $3.465 a bushel at 1:15 p.m. on the Chicago Board of Trade, after falling to $3.4375, the lowest for a most-active contract since June 2010. Prices fell 18% this year.

Soybean futures for delivery in November fell 1.6 percent to $10.0325 a bushel. The contract touched $10.0125, the lowest since September 2010.

Farmers may harvest 14.595 billion bushels of corn and 4 billion of soybeans, FCStone said Sept. 2. The USDA forecasts a record 14.032 billion bushels of corn and 3.816 billion bushels of soybeans.

Wheat futures for December delivery lost 1 percent to $5.3025 a bushel, the lowest closing price since July.