Corn and soybeans declined Tuesday as investors shrugged off dry weather in Brazil and instead focused on slack demand for U.S. supplies amid ample global production and stockpiles.
Global corn carryout is forecast by the U.S. Department of Agriculture at 211.8 million metric tons, a record, as production jumps to 973.9 million tons, the third-most ever behind only the past two years.
Rising output worldwide has led to a massive glut of the grain.
World soybean inventories in the current marketing year are expected to reach a record 86.2 million metric tons on production of 320.1 million tons, also the most ever.
Investors also may be selling to take profits or simply eliminate positions prior to year-end, analysts said.
Corn futures for March delivery declined 5 3/4 cents to $3.66 1/4 a bushel Tuesday on the Chicago Board of Trade.
Soybean futures for January delivery dropped 5 cents at $8.86 1/4 a bushel in Chicago. Soymeal for January delivery declined $2.10 to $278.60 per short ton. Soyoil fell 0.33 cent to 30.70 cents a pound.
Wheat futures declined as Russia is reportedly considering lowering export taxes on the grain next year, which could curb demand for U.S. supplies.
Wheat futures on the Chicago Board of Trade lost 6 1/4 cents to $4.72 3/4 a bushel. Kansas City wheat futures fell 3 cents to $4.70 3/4 a bushel.
(Source – http://www.agriculture.com/markets/analysis/corn/cn-soybes-fall-on-global-glut_9-ar51733)