Corn hits lowest since late October on bigger than expected US supply outlook
Soybeans weak after USDA cut export forecast, raised Brazil harvest view
US corn futures slid to a fresh three-month low on Tuesday, extending prior-day declines triggered by the US Department of Agriculture’s outlook for massive supplies following a record-large US harvest.
Soybeans touched a 2-1/2 month low after the USDA on Monday trimmed its US export view and raised its harvest estimate for rival supplier Brazil, while what futures followed corn and soybeans lower.
The USDA on Monday caught the corn market wrong-footed by increasing its estimate of the 2025 US harvest to a new record, contrary to expectations of a downward revision, while also pegging US quarterly stocks of the cereal at their largest ever.
Losses on Tuesday were tempered by bargain buying and technical support, and as traders turned their focus to weather in Brazil, where farmers will soon be planting their large second corn crop. “For corn, this was a rip-the-Band-Aid-off event and these are probably the worst numbers we’re going to see. If anything, there is some risk on South American weather,” said Ted Seifried, chief strategist at Zaner Group.
“But for soybeans, I don’t feel like it’s the same sort of mentality,” he said.
Brazil’s record-large harvest is likely to undercut demand for US soy in the coming months, and it remains unclear if a recent surge in US purchases by China will continue after a 12-million-metric-ton
Chicago Board of Trade March corn was down 1 cent at $4.20-1/2 a bushel at 12:54 pm CST after earlier touching the lowest point for a most-active contract since October 16. March soybeans were down 10-1/2 cents at $10.38-1/2 a bushel, the lowest since October 23. CBOT March wheat was down 3/4 cent at $5.10-1/2 a bushel.
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