U.S. corn futures are lower Wednesday as the ongoing harvest increases available supply and historically high prices dissuade buyers.
Corn for September delivery at the Chicago Board of Trade was recently down 8 cents, or 1%, at $7.99 per bushel. December corn was down 8 cents at $7.97.
The market has been range-bound for weeks, as traders await more information about this year's drought-ravaged U.S. crop. The harvest typically weighs on prices in the near-term as more supplies enter the pipeline.
"I think we'll continue to see people selling on any type of rally until we get more information on yields," said Jim Riley, analyst with Linn Group.
The crop was 10% harvested as of Sunday, up from 6% a week ago, according to the U.S. Department of Agriculture's weekly crop progress report released Tuesday. The harvest has been slowed in recent days by the remnants of Hurricane Isaac.
So far, early harvest results have been disappointing, analysts say, although they note that often the first corn to be harvested has the least yield potential. Worries about the crop will continue to limit the market's downside.
Traders said that private firm Lanworth, which uses satellite data to assess the crops, on Wednesday projected a national yield of 116.6 bushels per acre, and a total crop of 10.2 billion bushels.
That would be down from the U.S. Department of Agriculture's August estimate of 123.4 bushels per acre, and a total crop of 10.8 billion bushels. Last year's crop totaled an estimated 12.4 billion bushels, with a yield of 147.2 bushels per acre.
Despite the expectations for a poor crop...
Source: Argentine Beef Packers S.A.
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