By Commodity News Service Canada
WINNIPEG, Aug. 10 (CNS Canada) – Corn tumbled today following United States Department of Agriculture forecasts for another bumper harvest, adding to world oversupply.
The USDA estimate for corn was 14.153 billion bushels based on average yields of 169.5 bushes per acre. That would make it the third-largest U.S. corn harvest ever and represents a reduction in what USDA predicted in July when it forecast a corn harvest of 14.255 billion bushels at an average yield of 170 bu./acre.
The USDA trimmed its 2017-18 year-end supply estimate to 2.273 billion bushels, which is near the top end of private industry forecasts.
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Corn futures at the Chicago Board of Trade fell sharply on the news with heavy volumes traded. The September contract fell 15 cents U.S. to US$3.57.25 per bushel, on volumes of 295,092. The December contract fell 15.25 cents U.S. to US$3.71 per bu. on 431,816 traded. March fell 15 cents U.S. to US$3.83 per bu. with 56,588 traded.
Feed shortages in dry areas of Saskatchewan and Alberta have cattle producers saying they may be forced to thin herds and sell animals early to make up for feed shortages and rising feed costs. Brian Perillat, senior analyst at Canfax, a cattle markets information agency, said that hasn’t happened to any great degree yet, but auctions may see the fall cattle run heat up earlier than usual with some younger animals on offer.
Bulgaria expects record high wheat production this year, according to the analyst firm UkrAgroConsult. Bulgaria’s wheat harvest is expected to set a record high of 5.95 million tonnes, with an average yield of 2.07 tonnes per acre, the country’s agriculture ministry said. Bulgaria harvested 5.66 million tonnes of wheat in 2016.
