Chicago agricultural commodities further closed down Thursday, led by corn.
The most active corn contract for December delivery fell 5.25 cents, or 1.32 percent, to close at 3.9275 U.S. dollars per bushel. September wheat lost 2.75 cents, or 0.5 percent, to close at 5.485 dollars per bushel. November soybean shed 10.75 cents, or 0.97 percent, to close at 10.93 dollars per bushel.
U.S. corn prices have scored new lows, falling on favorable weather and the prospect of record large yields. The setup for 2014 U.S. corn crop is highly favorable and talk of per acre yield above 170 million bushels is widespread across the industry.
Market analysts believe that it will only take a few good rains to set the stage for a record large U.S. soybean yield, and there is strong potential that the U.S. will produce a 2014-2015 U.S. soybean end stock tally above 500 million bushels.
Unless there is an unexpected and dramatic change in the cool and wet North American weather pattern, market analysts believe that the U.S. is well on its way to record large corn and soybean production.
The U.S. Department of Agriculture (USDA) reported that for the week ending July 3, the U.S. sold 12.4 million bushels of wheat, 14.3 million bushels of old crop and 15.0 million bushels of new crop. In soybeans, the U.S. sold 2.1 million bushels of old crop and 19.3 million bushels of new crop soybeans.
Traders are waiting in anticipation for USDA's July World Agricultural Supply and Demand Estimates report (WASDE), which is scheduled to be released on Friday.