SINGAPORE: Chicago corn slid on Friday, with the market set for a second weekly loss after a US report showed domestic supplies remained plentiful despite a reduction from last month.

Wheat and soybeans also eased, with both commodities on track for weekly declines.

“In its latest WASDE report, the USDA (US Department of Agriculture) decreased its forecast for US corn ending stocks for 2023/24,” ING said in a note.

“Weaker production was partly offset by expectations for slightly weaker demand.”

The most-active corn contract on the Chicago Board of Trade (CBOT) lost 0.3% to $4.27-1/2 a bushel, as of 0223 GMT, with the market set to end the week lower. Wheat eased 0.2% to $5.50-3/4 a bushel and soybeans fell 0.3% to $11.56-1/4 a bushel.

For the week, wheat and soybeans have lost more than 2%. The USDA on Thursday projected domestic end stocks will remain at a five-year high even as the agency lowered its estimate from last month.

US corn stocks are projected at 2.122 billion bushels by the end of the 2023-24 marketing year on Aug. 31, down from USDA’s previous forecast of 2.172 billion bushels. Analysts had expected a cut to 2.102 billion.

Corn drops for second session on US weather; wheat eases after rally

The USDA’s monthly supply-and-demand report left its forecast for Brazil’s soybean crop unchanged at 155 million metric tons.

However, Brazilian crop agency Conab reduced its soybean output projection to 146.522 million metric tons due to adverse weather, highlighting a big divide in the outlooks.

Commodity funds were net sellers of CBOT corn, wheat, soybeans and soyoil futures contracts on Thursday, traders said.

Funds were net buyers of soymeal futures contracts.