US corn futures plunged on Thursday after the US Department of Agriculture projected a bigger-than-expected 2017 US harvest due to a record-large average yield that topped even the highest trade forecasts. Soyabeans also dropped as the USDA left its 2017 yield outlook unchanged despite widespread expectations for a cut.
In its monthly supply and demand report, the USDA raised its corn crop forecast to 14.578 billion bushels, based on an average yield of 175.4 bushels per acre (BPA) which, if realized, would top a record set last year. The soya crop was seen at a record 4.425 billion bushels, on a yield of 49.5 bpa. Chicago Board of Trade December corn was down 5 cents, or 1.4 percent, at $3.43-1/4 a bushel at 12:15 p.m. CST (1815 GMT) after falling to within 1/2 cent of its contract low. March and May contracts both posted contract lows.
Earlier on Thursday, the USDA said corn export sales last week jumped to a 5-1/2 year high of more than 2.9 million tonnes, including 2.3 million for shipment in the current marketing year, topping trade estimates. CBOT January soyabeans fell 11 cents, or 1.1 percent, to $9.87-1/2 a bushel after hitting a 3-1/2 week high ahead of the report amid signs of strong demand from China.
The United States soyabean industry has signed two letters of intent with Chinese importers covering a $5 billion purchase of an additional 12 million tonnes of soyabeans in the 2017/18 marketing year, deals announced during President Donald Trump's visit to Beijing. The Chinese government raised its forecast for soyabean imports in the 2017/18 crop year to 95.97 million tonnes from 94.5 million previously, boosted by strong crushing demand. CBOT December wheat was up 1 cent at $4.27-3/4 a bushel, supported by tighter-than-expected US supplies of higher protein varieties in its monthly report.