GRAINS-Corn slides on bigger-than-expected US crop outlook
* Corn sets fresh seven-week low on USDA forecast * Outlook takes some supply fear out of corn market-analyst * Government sees smaller-than-expected soybean crop (Recasts; adds USDA data, changes dateline, pvs HAMBURG/SINGAPORE) By Tom Polansek CHICAGO, Sept 12 (Reuters) - U.S. corn futures fell to a new seven-week low on Wednesday after the U.S. government issued a larger-than-expected harvest outlook, despite the crop being devastated by the worst drought in more than half a century. Soybean futures, which had pulled back 5 percent from a record high reached last week, jumped on a smaller-than-expected production forecast. Corn futures have dropped almost 10 percent from a record high touched earlier this summer. The U.S. Department of Agriculture, in a closely watched supply-demand report, estimated the corn harvest at 10.727 billion bushels, down slightly from last month but above the average analyst estimate of 10.38 billion. The soybean harvest was pegged at 2.634 billion bushels, down from last month and below the average analyst estimate of 2.657 billion bushels. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Trade estimates for US corn/soy production: Estimates for US ending stocks: Trade estimates for global ending stocks: Graphic: production, stocks: link.reuters.com/myr45s Graphic: U.S. harvested acres:link.reuters.com/zyt22t ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> "Clearly it was bullish beans and bearish corn," Charlie Sernatinger of ABN AMRO in Chicago said about the report. Chicago Board of Trade new-crop December corn slid 1.2 percent to $7.68-1/2 a bushel by 8:35 a.m. Central time. November soybeans rose 1.2 percent to $17.22-1/4 a bushel after falling to a three-week low on Tuesday. December wheat slipped 0.7 percent to $8.77-1/2 a bushel. EASING FEARS Corn and soy futures reached their highs during the summer as the drought slashed harvest prospects at a time when stocks of the crops were already low. However, with the fall harvest running faster than usual, the USDA lowered its corn forecast by less than 1 percent; traders had expected a cut of nearly 4 percent from August. The surplus of corn at the end of this marketing year would be the smallest since 1996, but 24 percent larger than analysts' expected. "At least initially looking at the headline numbers, it's going to take some of the fear of super short production out of this market," Jack Scoville, vice president of Price Futures Group, said about corn. The smaller-than-expected forecast for the soybean crop surprised some traders and analysts, who had thought the USDA may raise its production outlook from last month due to beneficial rains in late August. USDA cut its forecast of the soybean crop 2 percent from its August figure - twice the cut expected by traders. It said the carry-over at the end of the marketing year would be the smallest in eight years although slightly larger than expected. Prices at 8:21 a.m. CDT (1321 GMT) LAST NET PCT YTD CHG CHG CHG CBOT corn 773.50 -8.75 -1.1% 19.6% CBOT soy 1711.00 14.50 0.9% 42.8% CBOT meal 528.60 4.70 0.9% 70.8% CBOT soyoil 55.94 0.47 0.9% 7.4% CBOT wheat 849.00 -11.00 -1.3% 30.1% CBOT rice 1492.00 20.00 1.4% 2.2% EU wheat 261.25 -2.25 -0.9% 29.0% US crude 97.15 -0.01 0.0% -1.7% Dow Jones n/a Gold 1738.30 6.66 0.4% 11.2% Euro/dollar 1.2906 0.0052 0.4% -0.3% Dollar Index 79.6860 -0.1710 -0.2% -0.6% Baltic Freight 661 -1 -0.2% -62.0% (Additional reporting by Julie Ingwersen; Editing by Keiron Henderson and Maureen Bavdek)
- Man called Bitcoin's father denies ties, leads LA car chase
- Ukraine standoff intensifies, Russia says sanctions will 'boomerang' |
- Florida mayor fights backyard gun ranges in 'Gunshine State'
- Apple loses bid for U.S. ban on Samsung smartphone sales
- 'Everything is fine', Pistorius told guard after shooting girlfriend |