With harvest nearing the finish line, all eyes are now looking to the USDA’s reports on Friday. Many expect the U.S. corn crop to surpass previous forecasts.
"Everyone is expecting the USDA on Friday to increase its forecast for the soybeans and the corn harvests," Michaela Kuhl, a grains analyst with Commerzbank, told Reuters.
"All the estimates have come in quite high so everyone is expecting very good numbers. Unless there are any news to the contrary, it will be very difficult for corn prices to increase over the next few days," he added.
Preliminary results of a Reuters poll shows that nearly every analyst is pegging this season’s corn crop at 13.8 billion bushels or higher, with several expecting it to be above 14 billion bushels.
This would beat the record crop of 13.1 billion bushels.
Informa Economics expects corn production at 14.223 billion bushels, up from its previous forecast of 14.010 billion.
A Bloomberg survey of 36 analysts showed that the corn crop may be 30 percent larger than in 2012.
“Prices are being more heavily influenced again by the prospect of a high global corn surplus,” Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, said in a report. “This is looking increasingly likely in view of positive U.S. harvest results.”
Bloomberg reports that corn futures slumped to its lowest price in more than three years on speculations of increasing supplies on Monday. The USDA will update its production forecast on Friday.