CHICAGO, Nov. 9 (Xinhua) -- Chicago Board of Trade (CBOT) grains futures close lower on Wednesday after the U.S. Department of Agriculture(USDA) raised its domestic harvest estimates from already record-high levels.
The most active corn contract for December delivery fell 13.5 cents, or 3.81 percent, to 3.4075 dollars per bushel. December wheat delivery dropped 8.5 cents, or 2.05 percent, to 4.0675 dollars per bushel. January soybeans fell 20.25 cents, or 2.00 percent, to 9.91 dollars per bushel.
In a monthly report, the USDA said farmers will grow 15.226 billion bushels of corn this year, with an average yield of 175.3 bushels an acre. That was up from its October forecast for 15.057 billion bushels and an average yield of 173.4 bushels an acre.
The USDA estimated the soybean crop at 4.361 billion bushels, up 92 million bushels from its October outlook. The government raised its soybean yield estimate to 52.5 bushels per acre from 51.4 bushels.
The USDA also unexpectedly raised its 2016-17 corn ending stocks outlook to 2.403 billion bushels, which would be the fifth biggest ever, from 2.320 billion.
The agency increased its soybean ending stocks forecast to 480 million bushels, 60 million bushels higher than the average of analysts' estimates and up from its October estimate of 395 million bushels. If realized, soybean ending stocks would be the third highest on record.
Scott Shellady, TJM Investment vice president and CME Group trader, says the USDA Report is bearish, but the markets are digesting them as well as possible.
"The USDA's corn, wheat, and soybean ending stocks estimates are all bearish. Option volatility is getting hit. Pretty much everything across the board was mildly bearish but the market is taking it well," Shellady says.