US corn futures fell for the third straight session to the lowest levels in more than four months on Wednesday, declining in the wake of a government crop report showing larger global grain supplies, traders said. The US Agriculture Department in a monthly supply and demand report projected higher corn production in Brazil, India, Ukraine, Russia and the European Union. The agency left unchanged the projected corn yield in the United States but said the developing crop is in the best condition since 2007.
Futures fell as much as 1 percent after the release of the report, with front-month Chicago Board of Trade July corn futures hitting the lowest level since January 30. July corn futures' discount of 1 cent per bushel below new-crop December futures was the largest discount in three months. Analysts cautioned further downside potential in futures for the yellow grain, with the USDA likely to increase yields and production outlooks in coming reports. The next major crop report is due on June 30. Separately, the Energy Information Administration said ethanol production last week reached an average rate of 944,000 barrels per day, matching the marketing-year high notched in the week ending December 6. Stocks of the grain-based biofuel expanded to 18.42 million barrels.
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