FX.co ★ Corn Sinks to Four-Week Low on Ample Supplies

Corn futures fell to $4.40 per bushel, the lowest level since March 9, and are heading for a fourth consecutive weekly decline as abundant global supplies continue to pressure prices. The USDA left its projection for US corn ending stocks unchanged at 2.127 billion bushels, slightly below market expectations of 2.128 billion bushels but still the highest level in seven years. At the same time, the agency raised its season-average farm price estimate by 5 cents to $4.15 per bushel, citing “reported prices to date.”

On the global front, the USDA kept its South American production forecasts steady, holding Brazilian output at 5.197 billion bushels and Argentine production at 2.047 billion bushels, contrary to expectations for modest increases. Global ending stocks were revised up to 294.81 million metric tons, from 292.75 MMT in March, exceeding the trade’s average estimate of 293.07 MMT.