Corn Falls to Two-Month Low as Record Harvest Adds to Stocks

Corn futures fell to the lowest in more than two months in Chicago and soybeans extended their decline to the longest in almost a year as record U.S. crops added to stockpiles.

World stocks of corn, soybeans, rice and wheat will rise 8.3 percent to 482.3 million metric tons this year, according to the U.S. Department of Agriculture. Farmers around the world lifted production in response to record prices in 2008, and the U.S. corn and soybean harvests were all-time highs last year, the USDA said yesterday.

“There’s certainly still plenty of stocks of corn globally,” said Michael Pitts, director for commodity sales at National Bank of Australia Ltd. in Sydney.

Corn for March delivery fell 4.4 percent to $3.7525 a bushel on the Chicago Board of Trade at 2:14 p.m. Paris time after sliding as low as $3.7275, the lowest level since Nov. 2. March-delivery soybeans slipped 0.3 percent to $9.75 a bushel, down for a sixth day and the longest losing streak for the most- active oilseed contract since February 2009.

Record corn and soybean crops in the U.S., the world’s largest grower and exporter, may extend a slump in prices this month to more than 20 percent before the next harvest in September, said Roy Huckabay, executive vice president at Linn Group, a Chicago-based commodity broker and researcher.

Corn futures for December delivery may drop 28 percent to $3 a bushel by September from $4.175 yesterday, Huckabay said. Soybeans for November delivery may decline 22 percent to as low as $7.50 a bushel from $9.65 yesterday, he said.

“The fundamental story has changed dramatically, and that means a long-term bear market in prices,” Huckabay said.

Wheat for March delivery fell 1.1 cents to $5.30 a bushel. Milling wheat for March delivery traded on Liffe in Paris slipped 0.8 percent to 128.50 euros ($187.28) a ton. (Bloomberg)