“Inventories were larger than expected and signal no shortfall in supplies ahead of the harvest this year,” Dale Durchholz, the senior market analyst for AgriVisor LLC in Bloomington, Illinois, said in a telephone interview. “Corn supplies are comfortable.”

Corn futures for December delivery fell 4.5 percent to $4.2725 a bushel at 11:39 a.m. on the Chicago Board of Trade, heading for the biggest decline since June 28, 2013.

Global grain stockpiles, excluding rice, are forecast to climb to a 15-year high by the end of the 2014-2015 season, the London-based International Grains Council said on June 26.
Soybeans Tumble

Soybeans fell to the lowest since January 2012 as the USDA said farmers will plant more than analysts expected.

Seedings will reach an all-time high of 84.839 million acres. Analysts expected 82.213 million acres, according to a Bloomberg survey. The USDA said in March that growers intended to plant 81.493 million.

?“Certainly, we were all fearing for a record number, but this was way out of the range of expectations,” Bill Nelson, senior economist at Doane Advisory Services in St. Louis, said in a telephone interview. “We had the wet start to the corn planting season. In the end, that might have encouraged some farmers to switch from earlier intentions into soybeans.”

Eoin Treacy's view

Due to a confluence of factors the commodity complex has experienced a rotation where the metal and energy sectors have returned to outperformance while volatility within softs and agriculture has resulted in a great deal of variability in terms of performance. Grains and beans have come under particular pressure.

Corn failed to hold the move above 500¢, posting two downside key reversals in early May, and has fallen back to test the December and January lows above 400¢. Today’s downward dynamic is the largest decline since at least August and potentially suggests exhaustion. However a clear upward dynamic will be required to confirm a return of demand dominance. 

Wheat has also fallen aggressively over the last 8 weeks and retested the January lows near 550¢ today. This represents a potential area of support but a clear upward dynamic will be required to suggest short covering and an unwinding of the short-term oversold condition. 

Soybeans has fallen but not to the same extent as the corn and wheat. It at least paused today in the region of the 200-day MA, near 1400¢, but a clear upward dynamic will be required to signal demand is returning to dominance.