CBOT corn declines on larger-than-expected USDA yield, stocks estimates

• The USDA in its monthly supply-demand reports raised its estimate of the US average corn yield to 168.4 bushels per acre.
• The government cut its forecast of US 2019-20 corn ending stocks to 1.929 billion bushels, which was down from 2.190 billion last month.

CHICAGO: Chicago Board of Trade corn futures fell on Thursday, with the benchmark December contract sliding more than 3% after the US Department of Agriculture surprised traders by raising its estimate of the US 2019 corn yield.

* CBOT December corn settled down 14 cents at $3.80-1/4 per bushel, the contract's biggest single-day slide in nearly two months.

* The USDA in its monthly supply-demand reports raised its estimate of the US average corn yield to 168.4 bushels per acre, up from 168.2 last month. Traders on average had expected a reduction.

* The USDA estimated US corn production 13.779 billion bushels, down slightly from September as a cut in harvested acreage offset the higher average yield.

* The government cut its forecast of US 2019-20 corn ending stocks to 1.929 billion bushels, which was down from 2.190 billion last month but well above the average estimate in a Reuters poll of 1.784 billion bushels.

* In a reminder of weak export demand, the USDA reported export sales of US corn in the week to Oct. 3 at 284,400 tonnes, below a range of trade expectations for 500,000 to 800,000 tonnes.