CBOT corn falls after USDA reports surprising jump in quarterly stocks
CORN•CBOT corn futures fell sharply after the USDA reported September 1 corn stocks of 2.095 billion bushels, up 35% from a year earlier and above analysts’ 1.918 billion-bushel estimate.
1. Stocks exceed expectations
Corn stocks reached a seven-year high of 2.095 billion bushels on September 1, compared with 1.551 billion a year earlier. Analysts had expected 1.918 billion bushels.
2. Futures decline
The December CBOT corn contract fell as low as $4.98-3/4 a bushel, its lowest level since August 20, before closing down 21-1/4 cents at $5.00-3/4. Traders had also adjusted positions ahead of month- and quarter-end, when commodity funds shift holdings and book profits.
3. Harvest weather
Rains continued to slow harvesting in the US Corn Belt. Forecasts called for drier weather after Friday.
