Corn Prices Decline Despite USDA Yield Reduction
Despite a reduction in the U.S. corn yield estimate by the USDA, corn futures closed lower on Friday with contracts down between 2¾ to 5 cents. The December contract fell 6½ cents for the week, and cash prices also declined slightly. A private export sale of 264,000 metric tons to Mexico was reported but did not offset downward pressure from reduced production estimates. The USDA's monthly Crop Production report showed a yield drop to 178.5 bushels per acre with total U.S. corn production down by 213 million bushels due to fewer harvested acres. Old crop ending stocks were adjusted lower, while new crop carryout was also reduced significantly on the back of revised production and export assumptions. Managed money traders trimmed their net long position in corn futures and options slightly from record highs but still maintained a large net long as of September 3.
Topics: corn export sales futures prices USDA report