Indications about sufficient worldwide supplies tugged down corn futures on Friday as production in the U.S. climbed while demand waned, according to Bloomberg.
By the end of the marketing year for 2013-14, inventories of the grain are forecast to be as high as 1.969 billion bushels, the U.S. Department of Agriculture said on Thursday. That new figure represents an increase from the 1.949 billion bushels that were projected in June.
"We continue to expect a significant recovery in U.S. corn and soybean production and lower prices" during the second half, states a Friday report authored by analyst Damien Courvalin with Goldman Sachs Group Inc., in New York, according to Bloomberg. "Our expectation for lower prices also reflects the already realized large South American harvest and current weakness in global demand."
At 10:22 a.m. on Friday, corn futures plunged 2.32 percent, a 0.1225-cent loss to $5.1475 per bushel.
Global production of corn is forecast to climb to 959.84 million tons, according to Food Business News. That represents a climb of 12 percent from the last year's total of 855.05 million tons.
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