Corn futures (C_1:COM) dropped to their lowest point in over four months on Monday, as traders braced for a U.S. Department of Agriculture (USDA) report expected to show higher global grain supplies. Prices fell as much as 0.8% to $4.38 a bushel in Chicago, marking the lowest level since July 1, before partially recovering. The USDA is set to release its monthly supply and demand estimates on Tuesday.
Analysts surveyed by Bloomberg News anticipate that increased corn inventories in South America will offset a slight reduction in U.S. production forecasts. The USDA’s October report, which raised American corn yield estimates, had already triggered a sharp decline in prices. The upcoming report could influence agricultural commodity prices, grain trading companies, and fertilizer producers, with larger inventories potentially pressuring corn prices further.
Speculative positioning has turned bearish, with investment funds recently shifting to net short positions in corn futures. This shift comes amid seasonal selling pressure from the U.S. autumn harvest. Meanwhile, soybean (S_1:COM) futures saw little change after earlier gains, as analysts expect the USDA to increase its estimate for an already record U.S. soybean crop.