Projections for harvests in the U.S. to bounce back from last year's drought conditions prompted corn futures to drop on Tuesday as soybean futures also lost value, according to Bloomberg.
Production of corn might push to 13.76 billion bushels, which is 28 percent higher than totals from 2012 yet still below estimates from last month, according to the U.S. Department of Agriculture. Conditions for soybeans were reduced after parts of the Midwest were parched.
"In spite of a new lower forecast of U.S. corn production, we do still remain bearish corn prices," states a Tuesday report authored by analyst Chris Gadd with Macquarie Group Ltd. in London, according to Bloomberg. "The expected supply rebound should still be sufficient to see a large build in inventory, given the weak demand outlook."
At 10:08 a.m. on Tuesday, corn futures fell 1.13 percent, a 0.055-cent drop to $4.80 per bushel. Soybean futures sank 0.96 percent, a 0.125-cent loss to $12.9075 per bushel.
Reuters reports losses for corn futures on Tuesday come one day after the agriculture commodity surged more than 20 cents per bushel.
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