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Corn closes lower after effect of USDA report fades

 Corn prices fell amid the dollar's decline against most of the major currencies during Monday's trading, in addition to the fading of fears over supply shortages following the monthly US Department of Agriculture report.



The US government cut its forecast for domestic corn production by 2.7% and its forecast for the soybean harvest by 1.5% due to dry weather and reduced planting areas.



The report also indicated that the US wheat harvest is almost complete, while the corn and soybean harvest will begin next month. It is expected that corn production will reach 14.750 billion bushels based on an average production of 174.6 bushels per acre.



By comparison, analysts expected US corn production to reach 15.004 billion bushels and soy production to reach 4.375 billion bushels.



The USDA report in July had forecast corn production at 15.165 billion bushels with an average yield of 179.5 bushels per acre, while soybean production was forecast at 4.405 billion bushels with an average return of 50.8 bushels.



On the other hand, the dollar index rose - against a basket of major currencies - by 20:36 GMT, by 0.1% to 92.6 points, and recorded the highest level at 92.6 points, while it recorded the lowest level at 92.4 points.



At the close of trading, corn futures for September delivery fell 0.5% to $5.64 a bushel.

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