2014.11.0401:55:19UTC+00Corn continues decline behind slowing demand for US exports

Corn fell for the second consecutive day after new data from the US government showed that there was a drop in demand for the country’s exports.

Futures for the commodity with a delivery date in December fell by as much as 0.8% for a price per bushel of $3.705 and was trading late morning SIngapore time at $3.7125 on the Chicago Board of Traded. Corn lost 0.9% yesterday after having gained 17% for the month of October, its best since July 2012, due to rain delays in harvests in the US, the top grower of the crop in the world.

The volume of corn inspected for exports decreased by 42% on October 30th compared to the previous week to a 14 month low at 425,856 metric tons, says a report yesterday from the US Department of Agriculture (USDA). Separate data from the USDA shows that 65% of the season’s harvest has been completed as of November 2nd, up from last week’s 46% and analysts’ forecasts of a 61% collection.

Analyst Graydon Chong from Sydney’s Rabobank International says that, “We will have a very large crop out of the U.S. and it will be hard to see the demand side matching that.”

Last month, the USDA predicted that farmers in the country will harvest a record high 14.475 billion bushels. Joel Burgio, a meteorologist from DTN, claimed yesterday that weather over the Midwest will continue to be “mostly favorable” for both corn and soybeans.

Soybeans with a delivery date in January lost 0.3% for a price per bushel of $0.2675, posting its second losing day in a row. Harvesting of the crop was 83% done as of November 2nd to improve on the previous week’s 70%, based on USDA data.

Wheat for December delivery was slightly up at $5.385 per bushel from yesterday’s $5.3825.