November 4th, 2013

Corn futures dropped for a fifth day, matching a three-year low it reached yesterday, as harvesting progressed in the U.S. amid speculation the government will increase its production estimate this week. Wheat fell.

Corn for December delivery lost as much as 0.2 percent to $4.2525 a bushel on the Chicago Board of Trade, matching yesterday’s intraday low that was the lowest price for a most-active contract since Aug. 26, 2010. Futures traded at $4.255 by 11:18 a.m. Singapore time, slumping 39 percent this year.

The U.S. harvest may reach a record 14.03 billion bushels, or 1.3 percent more than the Department of Agriculture’s prediction in September and 30 percent larger than in 2012, according to a Bloomberg survey of 36 analysts. The USDA will update its forecasts on Nov. 8. U.S. farmers collected 73 percent of the crop as of Nov. 3 from 59 percent on Oct. 27, the agency said in a report yesterday. The U.S. is the world’s biggest grower.

“Seasonal harvest pressure is the main factor weighing on corn prices,” Vanessa Tan, an analyst at Phillip Futures Pte in Singapore, said by e-mail.

Corn may slump to $3 a bushel in 2014, INTL FCStone Inc. said yesterday. The commodity researcher and broker raised its U.S. harvest estimate last week to 14.367 billion bushels.

Wheat for December delivery dropped 0.1 percent to $6.62 a bushel, matching yesterday’s low, the cheapest since Sept. 25. Soybeans for January delivery gained 0.2 percent to $12.5925 a bushel, climbing for a second day.

- Supunnabul Suwannakij in Bangkok at Bloomberg.