Forex Pros – utures Pros – Corn futures were down for a second day on Thursday, tumbling to a six-week low after the U.S. Department of Agriculture lifted estimates of U.S. corn stockpiles, easing concerns over tightening supplies.
On the Chicago Mercantile Exchange, corn futures for July delivery traded at USD6.6950 a bushel during European morning trade, tumbling 1.13%.
It earlier fell as much as 1.3% to USD6.6838 a bushel, the lowest price since March 31.
The USDA said in its World Agricultural Supply and Demand Estimates report published Wednesday that it now expected U.S. corn supplies in the 2010-11 season ending August 1 to total 730 million bushels, up 7.5% from a previous estimate of 675 million bushels, a 15-year low.
Analysts expected U.S. corn supplies to decline to 665 million.
For the 2011-12 season beginning September 1, the agency expected U.S. stockpiles to reach 900 million bushels, up 18% from a previous estimate of 730 million bushels.
The USDA also lowered its estimate for U.S. corn exports in the 2010-11 season, reflecting slowing world demand as prices rise. U.S. corn exports were expected to drop to 1.8 billion bushels, the lowest in nine years.
The U.S. is both the world’s largest corn producing nation and the world’s largest exporter of the grain.
Elsewhere, wheat for July delivery slumped 0.92% to trade USD7.5175 a bushel, while soybeans for July delivery shed 0.6% to trade at USD13.2525 a bushel during European morning trade.
U.S. wheat inventories were projected to total 702 million bushels next year, more than the 683 million expected by analysts, the USDA said.
Total domestic soybean stockpiles estimates rose to 170 million bushels from a previous projection of 140 million, surpassing expectations of 151 million.
Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.
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