Surging supplies of U.S. corn and soybeans coupled with higher revenue for specialty crops will boost farm incomes to a record this year even after grain prices fell, the U.S. Department of Agriculture said.
Demand for U.S. corn fell the most since 1975 in the past year, leaving a bigger-than-forecast surplus stacked in silos just as farmers begin reaping what the government says will be the world’s largest-ever crop.
Corn futures fell to the lowest since 2010 on speculation that a record U.S. crop will boost world reserves next year to the highest since 2002. Wheat dropped to the cheapest in 13 months, while soybeans gained.
Speculators cut bullish positions by the most in 16 weeks as commodities capped the first monthly loss since May on mounting concern that central bank stimulus measures won’t be enough to halt slowing economic growth.
Speculators increased bullish commodity positions by the most in two years as prices rebounded from a bear market, boosted by a crop-damaging drought in the U.S. and moves by China and Europe to spur economic growth.