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Corn and wheat futures ended lower Friday, pulling back after a two-session climb, and soybean futures rose as the U.S. Agriculture Department cut its 2012 estimates for corn- and soybean-crop yields and predicted an increase in wheat production. December corn(US:CZ2), the most active contract, lost 4 cents to settle at $8.09 per bushel on the Chicago Board of Trade. The front-month September contract(US:CU2) lost 18 cents to end at $8 per bushel. The contract touched a high of $8.436 earlier Friday, surpassing the previous front-month, intraday high from July 20 of $8.274, according to a CME Group spokesman. In its July crop-production report, released Friday, the USDA adjusted its average corn-yield estimate to 123.4 bushels per acre, down 13% from 2011. For the most part, the decrease in corn estimates were largely foreseen by investors in the market. “I don’t think it was a surprise,” wrote Mitch Kasper, a principal for Midwest AG Investors, in an email. “Most professionals feel the USDA is behind the market and expect another reduction in yield.” Kasper said he believes the actual yield per acre will be somewhere between 112 and 118 bushels per acre, and that prices may still rally.... Continue to read.
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