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U.S. corn, soybeans trade near 4-year lows ahead of USDA report

Published 09/30/2014, 06:24 AM
U.S. corn trades near 4-year low ahead of USDA report
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Investing.com - U.S. corn and soybean futures traded near their lowest levels in more than four-years on Tuesday, as investors squared positions ahead of a quarterly stocks report from the U.S. Department of Agriculture due later in the day.

On the Chicago Mercantile Exchange, U.S. corn for December delivery traded at $3.2538 a bushel during U.S. morning hours, 0.23 cents lower than Monday's closing price of $3.2560.

Corn prices hit $3.2200 a bushel on Monday, a level not seen since June 2010.

Futures are on track to post a 22.1% decline in the second quarter as expectations of record yields across much of the U.S. grain belt drove prices lower.

The U.S. Department of Agriculture estimated on September 11 that the U.S. corn harvest will hit a record-high 14.39 billion bushels, up from a projection of 14.03 billion in August.

Global ending stocks were forecast to exceed 2 billion bushels for the first time in a decade.

Meanwhile, U.S. soybeans for November delivery traded at $9.1863 a bushel, down 4.38 cents from $9.2340 on Monday.

The November soybean contract fell to $9.0540 a bushel on Monday, the lowest since June 2010.

Prices of the oilseed are 30.8% lower since the start of June, as ongoing expectations for a record U.S. harvest weighed.

The USDA estimated earlier in the month that this fall's U.S. harvest would reach an all-time high of 3.913 billion bushels.

Soybean ending stocks will more than triple in the 2014-15 marketing season to 475 million bushels, the highest since the 2006-07 season.

Elsewhere on the CBOT, U.S. wheat for December delivery shed 2.73 cents to trade at $4.7788 a bushel.

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Wheat prices slumped to a four-year low of $4.6620 on September 25, as concerns over weak demand and plentiful global supplies weighed.

Prices of the grain are down 17.4% in the three month to September.

The USDA said on September 11 that U.S. ending stocks were forecast at 698 million bushels, up from a previous estimate of 663 million, due in large part to weak export demand for U.S. supplies.

Global wheat inventories at the end of the 2014-15 season will total 196.38 million metric tons, up from 192.96 projected in August.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.

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