U.S. corn and soybean futures plunged on Thursday, with both commodities on track for their biggest daily loss in months, after a government crop report shocked professional traders in both Chicago and New York.
The U.S. Department of Agriculture in its annual plantings and quarterly stocks reports also said farmers would plant the most corn acres since 1936 and the fourth largest soybean area ever.
Corn stocks were estimated as 5.399 billion bushels, above the average analyst estimate of 5.013 billion bushels. Soybean stocks were pegged at 999 million bushels, above trade guesses of 935 million bushels.
Corn dropped more than five percent on the news, headed for its biggest daily loss since last May. Soybeans fell 3.8 percent, on pace for its worst daily loss in 2-1/2 months, with the declines limited relative to corn after the crop report estimated fewer-than-expected soybean acres.
"We thought beans were going to go up. We thought there was going to be a shortage of carryover stocks and a shrinkage in acreage, but it came out the other way," said Rich Ilczyszyn, a professional trader at the Chicago Mercantile Exchange on CNBC's "Futures Now," adding he plans to get long soybeans because he thinks the selling is overdone. "We have so much time yet for the grain crop to develop, I wouldn't get too bearish or bullish anywhere here, but I'm actually buying the beans."
From the New York Mercantile Exchange, pro trader Anthony Grisanti took a more bearish view and knocked Ilczyszyn's trade.
"I think that corn can drag down everything by the way those numbers came out and the supply that we're looking at," said Grisanti, founder of GRZ Energy.