Chicago agricultural commodities continued dropping Friday, led by wheat.
The most active corn contract for December delivery fell 8 cents, or 2.04 percent, to close at 3.8475 U.S. dollars per bushel. September wheat lost 22.5 cents, or 4.1 percent, to close at 5.26 dollars per bushel. November soybean shed 18 cents, or 1.65 percent, to close at 10.75 dollars per bushel.
Corn, soybeans, and wheat all dropped sharply Friday as the much-anticipated U.S. Department of Agriculture July World Agricultural Supply and Demand Estimates Report (WASDE) was considered bearish.
The report raised 2013-2014 U.S. corn end stocks by 100 million bushels to 1,246 million bushels, held 2013-2014 U.S. farmgate average corn price at 4.45 dollars per bushel, and put 2014 U.S. corn production at 13,860 million bushels by using a yield of 165. 3 bushels per acre. But, highly favorable weather in the U.S. is causing traders to consider a 2014 U.S. corn yield of 170 bushels per acre or more.
The report estimated 2014-2015 U.S. corn end stocks at 1,801 million bushels with exports of 1,700 million bushels and ethanol use of 5,050 million bushels. Total U.S. 2014-2015 corn use appears to be capped at 13,500 million bushels.
World 2014-2015 corn production is estimated to be record large at 981 million tonnes; and 2014-2015 world corn end stocks may rise to nearly 200 million tonnes by the autumn harvest.
The report estimated U.S. all wheat production at 1,992 million bushels, up 50 million bushels from June. U.S. all wheat yield was estimated at 43.1 bushels per acre. The report put 2014-2015 U.S. all wheat end stocks at 660 million bushels.
The report raised 2014-2015 U.S. soybean production to a record large 3,800 million bushels, raised 2014-2015 soybean export estimate to 1,575 million bushels. The report also put 2014-2015 world soybean end stocks at record large 85.31 million tonnes, up 2.4 million tonnes from last month.