Chicago agricultural commodities settle lower with strong harvests in the offing

Chicago Board of Trade (CBOT) grains futures closed lower Wednesday, declining amid the prospect of record harvests in the Farm Belt and expanded crop stockpiles.

The most active corn contract for December delivery was down 0.25 cents, or 0.08 percent, to 3.155 dollars per bushel. December wheat delivery fell 4 cents, or 1.02 percent, to 3.8825 dollars per bushel. November soybeans fell 7.75 cents, or 0.82 percent, to 9.43 dollars per bushel.

Soybean prices fell to the lowest level in more than four months, sliding as expectations grow that average U.S. soybean yields could come in higher than the U.S. Department of Agriculture's latest estimate due to favorable weather toward the end of the growing season.

Some private forecasters are now calling for an average yield over 50 bushels per acre, analysts said, which tops the government's projection earlier this month for 48.9 bushels. The USDA already is anticipating farmers will collect a record soybean crop this year, and higher yields could result in an even bigger harvest.

Corn prices declined to a fresh seven-year low, buffeted by expectations that U.S. farmers will collect a history- setting crop this year. Prices for the grain have so far dropped 16% this year and some market watchers believe they could fall to as low as $2.50 a bushel, traders said.

Wheat posted the biggest percentage decline as the market struggled to find support after prices fell to 10-year lows.Additional pressure stemmed from news that Egypt, the world's biggest wheat importer, canceled its latest wheat purchase tender after receiving just one offer.

Wheat futures fell despite the U.S. Department of Agriculture's confirmation that private exporters in the last day sold 138,000 tonnes of U.S. hard red winter wheat to unknown destinations. Endit