Log In

Reset Password

Bumper US harvest forecast brings down cereal futures

WASHINGTON (Reuters) - US farmers are poised to harvest their second-largest corn crop on record after near-ideal growing weather boosted yields to a projected record high, the US Agriculture Department said on Friday.

USDA pegged the corn crop, used to feed livestock and make ethanol, at 13.018 billion bushels, up eight percent from last year and just a shade smaller than the all-time record crop of 13.038 billion bushels seen in 2007/08.

Corn yields were forecast at a bin-busting 164.2 bushels per acre, up seven percent from last year and up nine percent from 2007/08.

"What the government is telling us is that we've got a big crop out there. We've just got to get it home now," said Don Roose, analyst with Iowa-based US Commodities.

Analysts surveyed ahead of the report had expected corn yields of 162.57 bushels per acre, on average, and total production of 12.986 billion bushels.

The big crop weighed on corn futures prices at the Chicago Board of Trade, which were down two cents to $3.62 per bushel late on Friday.

Farmers will harvest a record 3.25 billion bushels of soybeans, USDA projected, up five million from last month's estimate and up 10 percent from last year. Soybean yields will be the third-highest on record, USDA said.

China's total soy imports for 2009/10 were forecast at 39.5 million tonnes, up one million tonnes from last month's estimate, and just under the 40.7 million tonnes estimated for 2008/09.

"I think soybeans are still in a tenuous market position," Schnittker said.

"Getting these big South American crops is very important," he said, noting crops in Brazil and Argentina are not yet planted.