Market News

Corn, Chicago wheat hit multi-year lows

Soybeans were lower on speculative and technical selling. U.S. crop conditions are generally considered to be good, but there has been damage in parts of the Midwest with the potential for more. The next USDA production estimate is out September 12th. The private crop tour yield estimate for soybeans was up slightly from the USDA’s August projection. Soybean meal was lower and bean oil was higher on the adjustment of product spreads.

Corn was lower on speculative and technical selling, with spot prices hitting the lowest levels in almost seven years. Corn’s also watching the weather, with generally good conditions overall, along with some areas of serious concern. The private crop tour corn yield estimate was below the USDA’s most recent guess. Still, even if the USDA does make a downward revision next month, the new crop ending stocks projection should stay large. Ethanol futures were lower.

The wheat complex was lower on speculative and technical selling, along with the firm dollar. Contracts closed near the new lows set during the session, including the lowest price for a spot Chicago contract since September, 2006, with a large world supply and an increasing amount of export competition. Canada’s widespread harvest is about to get underway and Russia is expected to harvest a record crop. SovEcon now sees Russia’s crop at 73 million tons. The Philippines and Thailand bought wheat from Australia, 60,000 tons and 55,000 tons, respectively.