Corn prices drop to 3.5 year low ahead USDA 2013 estimate

|By:, SA News Editor

The U.S. Department of Agriculture is expected to lift its estimate today for the 2013 corn harvest (CORN) to 14.05B bushels from a prediction in December of 13.99B bushels.

That would make last year's output the largest in U.S. history, surpassing the crop of 13.1B bushels in 2009.

If confirmed, the estimates are likely to add pressure to corn prices, which hit a 3 1/2 year low of $4.08 a bushel yesterday before closing at $4.12. That was still down 1.2%, with the decline also due to falling exports. Corn has dropped 2.4% this year after plummeting 40% in 2013.

Wheat prices suffered as well yesterday from poor overseas sales, hitting a two-year low of $5.785 a bushel before recovering a bit to close -0.8% at $5.8425.

ETFs: DBA, RJA, WEAT, DAG, JJA, AGA, RGRA, AGF, FUD, USAG, DIRT, UAG, WEET, TAGS, ADZ

This was corrected on 01/10/2014 at 05:31 AM. The headline incorrectly stated that the USDA estimate will be for 2014.