Chicago Board of Trade corn futures tumbled to contract lows on Thursday after the US Department of Agriculture forecast a bigger-than-expected 2017 US crop due to a record-large average yield that topped trade expectations. CBOT December corn settled down 6-3/4 cents at $3.41-1/2 per bushel, falling 1.9 percent in the steepest drop in nearly three months. The December 2017 through September 2018 contracts and 2019's March and May contracts all posted fresh lows.
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 which, if realized, would top a record set last year. The agency also raised 2017/18 US corn demand by 150 million bushels on higher feed use and exports. The USDA reported export sales of US corn in the latest week at a 5-1/2-year high of 2.939 million tonnes (old and new crop years combined), topping a range of trade expectations for 1.7 million to 2.3 million tonnes.
Brazilian government statistics agency Conab projected the country's 2017/18 total corn harvest at 91.6 million to 93.1 million tonnes. Argentina's Rosario exchange raised its 2017/18 corn crop estimate to at least 41.5 million tonnes versus 41 million tonnes previously, the exchange said on Wednesday, citing good climate conditions.