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Corn and soybean prices fell after forecasters said this year's U.S. harvest will be bigger than expected, setting up farmers for another year of large crops and low prices.
Analysts had expected the U.S. Department of Agriculture to trim the corn and soybean harvest forecasts it made last month. Instead, the agency raised them on Tuesday, putting farmers on track for another year of big supplies amid a global grain glut.
The USDA estimated that farmers will harvest a record 4.431 billion bushels of soybeans this year at a yield of 49.9 bushels per acre, and 14.184 billion bushels of corn at a yield of 169.9 bushels per acre this year. That would be the third-largest annual haul for that crop.
Grain Supplies to Remain Big, USDA Says -- Market Talk
13:00 ET - Another year of bumper crops in the American heartland means grain supplies in the US and abroad will remain elevated, the USDA says. The government delivered a double-whammy to farmers in its monthly supply-and-demand report, forecasting larger than expected corn and soybean harvests this year, as well as bigger-than-anticipated crop supplies for the current season. The USDA expects corn stockpiles to total 2.34B bushels and soybean inventories to hit 475M bushels, both above analyst estimates. "Once again, the trade got caught looking for lower yields and got burned," says Charlie Sernatinger of ED&F Man Capital Markets. Nearby corn and soybean futures are down 3.4% and 1.9%, respectively, in midday trade. (firstname.lastname@example.org; @jessenewman13)
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Bunge Buys Stake in Malaysian Seed-Oil Producer -- Market Talk
7:39 ET - In line with its previously announced strategy of pursuing joint ventures over traditional M&A, Bunge (BG) picks up a 70% stake in speciality oil producer Loders Croklaan Group from owner Malaysia's IOI (1961.KU) for $946M. The combined company will have a board consisting of both Bunge and IOI members and is expected to generate $15M savings in the first year and $35M by year three. The deal gives BG expanded access into the $33B B2B semi-speciality and specialty oils market and broadens Loders's geographic footprint. BG shares, inactive premarket, have risen 4.9% so far this year to $75.75. (email@example.com;@moisenoise)
Hog Futures Carve New Low
Hog futures fell over 3% to the lowest point this year as pork belly prices continued to drag down the market.
Pork bellies have fallen sharply after soaring to record-high prices earlier this summer on the back of booming demand for bacon. Prices fell $6.50 to $107.71 per 100 pounds at midday Tuesday, around half their late July peak.
October-dated lean hog futures fell 3.5% to 59.45 cents a pound at the Chicago Mercantile Exchange, the lowest close since mid-December.
(END) Dow Jones Newswires
September 12, 2017 18:46 ET (22:46 GMT)