Chicago Board of Trade (CBOT) corn futures fell to a fresh three-year low on Friday as expectations of a record-large US corn crop took a toll on prices. Soyabeans and wheat were nearly flat in consolidation trading ahead of the weekend and after the wheat market already fell nearly 3-1/2 percent for the week, the market's second consecutive weekly decline.
Position-squaring was beginning to surface ahead of the release next Friday of the US Department of Agriculture's (USDA) November crop production report. "We're looking ahead to next week's report and working in the last half of the corn harvest," said Shawn McCambridge, analyst for Jefferies Bache.
At 9:37 am CDT (1437 GMT), CBOT December corn futures were down 1 cent per bushel at $4.27-1/4 per bushel, November soyabeans were down 3 at $12.77-1/4 and December wheat was up 1/2 cent at $6.68. Analysts and traders see further declines in corn futures unless significant demand surfaces soon. The International Grains Council (IGC) raised its forecast for global 2013/14 corn output on Thursday by 5 million tonnes. The record US corn crop projections come after years of markets lurching from crisis to crisis as global harvests disappointed, leading to panic and uncomfortably high food prices. There was a severe drought in the United States last year. Soyabean export sales for 2013/14 were 4.7 million tonnes, topping estimates.