Chicago futures for grain and soybeans declined after the forecasts of the USDA

The most active corn futures on the Chicago Board of Trade fell sharply on Thursday after the government reported that U.S. farmers will harvest the largest corn crop in history this year.

The report’s forecast exceeded trade estimates. The most active CBOT corn contract at one point fell to $4.66-1/2, the lowest price since December 30, 2020, before starting to rise again.

Meanwhile, soybean futures fell after the World Agricultural Supply and Demand Estimates report predicted that global soybean stocks by the end of this season will be the largest on record.

Brazil’s crop production agency Conab also raised its forecast for the U.S. soybean crop in 2023/24 to 162.420 million metric tons from the previous 162.003 million, despite intense hot and dry weather in key regions.

Soybean futures came under pressure as traders took profits a day after the benchmark January contract hit its highest price in almost two months.

The sell-off came despite confirmation from the U.S. Department of Agriculture (USDA) that exporters sold 1.7 million tons of U.S. soybeans in the last day, including more than 1 million tons to China, extending a wave of recent export deals.

On Wednesday, Reuters reported that China bought at least 300,000 tons of soybeans.

“And I think they (the U.S. Department of Agriculture) had that information in hand, this morning…………,” said Rich Nelson, chief strategist at Allendale, according to Reuters.

Wheat futures continued to decline amid a stronger US dollar and indications in the WASDE report of increased global supplies, lower domestic consumption and higher ending stocks.

Most active contract for soybeans CBOT fell 22-1/4 cents to $13,43-1/2 per bushel. Quotes of corn CBOT Cv1 fell 8 cents to $4.68 per bushel, while wheat futures closed down 11-1/2 cents to $5.80-3/4 per bushel.

Tags: corn, prices, soybean, wheat