US corn futures slumped to their lowest levels in more than three years on Thursday as the large harvest under way in the United States overshadowed blockbuster export sales. An influx of grain from the advancing harvest was expected to replenish crop inventories that were drained by strong demand following a historic US drought last year.
Soyabean futures also fell under harvest pressure, with some traders expecting the US Department of Agriculture to increase its crop estimates in a monthly production report on November 8. The corn crop is already estimated to be record-sized and the soya crop the fourth largest in history. "Everybody's expecting big numbers and they'll probably get them," Jack Scoville, president of Price Futures Group, said about USDA production estimates.
Chicago Board of Trade December corn futures closed down 2 cents, or 0.5 percent, at $4.28-1/4 a bushel and hit a session low of $4.27, below a three-year low of $4.28-1/4 reached on Tuesday. The contract lost 3 percent during the month. November soyabeans lost 7-1/4 cents, or 0.6 percent, at $12.80-1/4 a bushel, and ended the month down 0.2 percent. December wheat slid 7-1/2 cents, or 1.1 percent, to $6.67-1/2 a bushel, and ended the month down 1.6 percent.
Commodity funds sold an estimated 5,000 corn contracts, 6,000 soyabean contracts and 4,000 wheat contracts. The big corn harvest advancing in the United States prompted the International Grains Council to raise its forecast for global 2013/14 corn output by five million tonnes to 948 million, well above last season's 863 million tonnes. Global stocks of corn at the end of the 2013/14 season were revised up 4 million tonnes to 152 million, well above the previous year's 126 million.
Harvest progress slowed in the US Midwest on Thursday due to rain but will likely pick up speed again by the weekend, according to Commodity Weather Group. The US harvest is large enough to absorb strong export sales reported on Thursday, traders said. China and other big grain importers embarked on a corn and soyabean buying spree during the US government's 16-day partial shutdown this month, taking advantage of a lapse in mandatory reporting of their deals, data showed.