Corn and wheat futures fell on bets that U.S. supplies may be adequate, indicating yesterday’s rally was exaggerated. Soybeans were unchanged.
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.
U.S. farmers will sow more soybeans than ever this year after rains forced them to switch away from corn, cotton and wheat, which need to be planted earlier, the Department of Agriculture said.
Wheat futures entered a bear market and corn fell to a four-month low as the U.S. government said global supplies will be bigger than analysts estimated.
Corn futures, off to the best start to a year since 2008, entered a bull market today as the U.S. government said supplies are tighter than expected. Soybeans rose to the highest in nine months.
"The big surprises this month were the cuts in U.S. and world carryover estimates."
- Dale Durchholz on Oct 10, 2014