CHICAGO: Corn and soybean futures fell to new three-year lows in front-month contracts at the Chicago Board of Trade on Monday under pressure from plentiful world supplies, heaping more pain on US farmers.

Nearby corn futures remained under $4 per bushel after sinking below that level on Friday for the first time since November 2020. The front-month contract has tumbled about 16% this year and is down 38% from a year ago, after record harvests in the United States and Brazil.

US farmers, who are holding large inventories of corn in storage from last year’s harvest, regret they did not sell more when prices were higher.

They face limited domestic demand for corn to feed livestock after ranchers reduced the US cattle herd to its smallest level in decades. The United States also faces competition for export sales from South American suppliers.

“We don’t have a reason to rally,” said Rich Nelson, chief strategist for brokerage Allendale.

Nearby March corn was down 2-1/2 cents at $3.97-1/4 a bushel by 10:45 a.m. CST (1645 GMT) after sliding earlier to $3.94-1/2. The most-active May contract was down 1 cent at $4.12-1/2.

Front-month March soybeans dropped 7-1/4 cents to $11.25-3/4 a bushel, while most-active May soybeans lost 6-3/4 cents to $11.35. Wheat was also weaker, with the most-active May contract down 3/4 cent at $5.68-1/4 a bushel.