Corn futures have declined more than 2% after a new report from the U.S. Department of Agriculture (USDA) forecast a record crop in America this year.
The USDA says it is anticipating that the U.S. corn yield in 2024 will reach an all-time high of 177.3 bushels per acre, well above the average of 174.9 seen in recent years.
The record U.S. corn crop is expected alongside a record crop in China, pushing global corn stock estimates to a six-year high.
News of the record corn crop has sent futures for the agriculture product down to $4.47 U.S. per bushel on the Chicago Mercantile Exchange, the lowest level since December 2020.
Selling in corn futures has surpassed the selling seen in other widely traded agriculture commodities, including wheat, soybeans, soymeal, and canola.
Money managers have increased their short positions in corn futures in recent weeks, taking their most bearish stance against the future price of corn since June 2020.
A short position is basically a bet that the price of an asset or commodity will decline over the near-term.
Corn futures are now down 33% from a year ago.
