Wheat, Corn, Soybeans Plummet as U.S. Predicts Larger Supplies
Wheat, corn and soybeans plunged the most allowed by the Chicago Board of Trade after the U.S. Department of Agriculture projected bigger supplies than forecast in December, Bloomberg reported.
World wheat inventories may rise to 148.4 million metric tons by the end of the marketing year on May 31, up 0.7 percent from a December estimate, the USDA said today in a report. Global corn supplies will jump to 136 million tons, up 9.9 percent from a December forecast, the USDA said. U.S. soybean stockpiles before the next harvest may increase 9.7 percent.
"We've got more inventory to work our way through, and we didn't need that," said Larry Glenn, an analyst at Prime Ag in Quinter, Kansas.
Wheat futures for March delivery fell 59.75 cents, or 9.5 percent, to $5.6975 a bushel in Chicago, after earlier reaching the maximum of 60 cents to $5.695 a bushel. The price has plunged 58 percent from a record $13.495 on Feb. 27.
Corn futures for March delivery dropped the 30-cent CBOT limit, or 7.3 percent, to $3.8075 a bushel. The most-active contract is down 52 percent from a record $7.9925 on June 27.
Soybean futures for March delivery declined the 70-cent limit, or 6.8 percent, to $9.66 a bushel. The price is down 41 percent from a record $16.3675 on July 3.