Chicago corn prices fell to their lowest level in nearly four years on Monday, while soybean prices also declined, following a widely monitored crop tour that predicted substantial U.S. harvests. Wheat prices also dropped, influenced by ample global supplies, particularly from the Black Sea region.
A Singapore-based grains trader noted, “The U.S. crop tour has estimated some big yields,” emphasizing that the outlook for beans and corn in Chicago futures is strongly positive for production.
As of 0958 GMT, the most-active corn contract on the Chicago Board of Trade fell 1.2% to $3.86-1/4 per bushel, marking its lowest price since October 2020. Soybean prices decreased by 0.8% to $9.64-3/4 per bushel, while wheat fell 0.5% to $5.25-1/4 per bushel.
Advisory service Pro Farmer projected a U.S. soybean harvest of 4.740 billion bushels, which is about 6% above the previous record set in 2021 and higher than the U.S. Department of Agriculture’s forecast of 4.589 billion bushels. However, Pro Farmer’s estimates suggested a smaller corn crop than previously expected.
Traders reported that farmers are selling off old-crop corn and soybeans to generate cash flow and make room for the new harvest. In the wheat market, Black Sea nations, particularly Russia, are dominating international sales at low prices, contributing to a decline in wheat demand.
Concerns about potential disruptions to Canadian grain exports eased after the Canada Industrial Relations Board intervened to halt work stoppages at the country’s largest railways.