Corn rebounded from the lowest price in three years after the government predicted smaller harvest gains than analysts forecast in the U.S., the world’s largest grower and exporter. Soybeans rose the most in eight weeks.
Government forecasters may have to reverse three straight months of lower U.S. corn-crop estimates as warm weather and near-record planting spur Goldman Sachs Group Inc. and Deutsche Bank AG to predict a record crop.
Corn futures plunged to a three- year low after the U.S. Department of Agriculture boosted its inventory estimate by 25 percent. Soybeans dropped the most in six months as supplies topped analyst estimates by 11 percent.
The gap between traders’ estimates of U.S. corn reserves, the world’s second-biggest, and official figures have reached the size of Russia’s annual consumption, increasing price swings at a time of near-record food costs.
Corn futures tumbled to a 32-month low, while soybeans and wheat fell to the cheapest in a year, after the government said U.S. farmers will plant more grain than forecast and the largest oilseed crop ever.