U.S. farmers are poised to reap their biggest-ever corn crop, expanding global stockpiles to the most in 13 years and spurring hedge funds and other speculators to make record bets that prices will keep slumping.
Cash premiums for corn shipped to export terminals next month near New Orleans fell relative to Chicago futures as higher prices encouraged U.S. farmers to boost sales of newly harvested crops. Soybean premiums rose.
Wheat crops in the U.S. Great Plains are showing signs that production may plunge more than the government forecast last week as hot weather and a lack of rain erode plant quality and force farmers to harvest early.
U.S. corn and soybean harvests may be smaller than government forecasts after the hottest July since 1955 stunted Midwest crop growth already delayed by late planting, said Roy Huckabay at commodity broker Linn Group.