CBOT corn futures slump on surprise from USDA stocks report
CORN•CBOT corn futures fell 3.69% after the USDA reported 2.095 billion bushels of corn in storage on September 1, up 35% from a year earlier and above analysts’ 1.918 billion-bushel estimate.
1. Corn stocks jump
Corn stocks reached a seven-year high of 2.095 billion bushels as of September 1, compared with 1.551 billion a year earlier. The figure exceeded analysts’ average expectation of 1.918 billion bushels.
2. Grains trade lower
The most-active corn contract fell 3.69% to $5.02-3/4 a bushel. Wheat futures dropped 2.45% to $6.75-3/4, while soybeans rose 0.12% to $12.99-1/4.
3. Other market pressures
A commodity risk management consultant said the corn market’s response was overdone, citing traders liquidating positions and triggered stop orders. Soybeans remained under pressure after being left off a tariff-reduction list following a summit between the US and Chinese leaders, dampening hopes for renewed Chinese purchases.
