CANBERRA- Chicago corn futures declined on Tuesday, after reaching a three-month high in the previous session when a US government estimate of corn stockpiles fell short of trade expectations, triggering a rush of short-covering.

Soybean and wheat futures also fell.

The most-active corn contract on the Chicago Board of Trade (CBOT) was down 0.4 percent at $4.23-1/4 a bushel, after climbing to $4.28 on Monday, its highest since June 27.

CBOT wheat was down 0.9 percent at $5.78-3/4 a bushel and soybeans fell 0.8 percent to $10.48-3/4 a bushel.

All three contracts hit four-year lows in recent months due to plentiful supply, but have since recovered some ground.

The US Department of Agriculture said on Monday that US farmers and merchants held 1.76 billion bushels of corn as of Sept. 1, up 29 percent year-on-year and the most since 2020, but below analysts’ expectations of 1.844 billion bushels.

The data showed demand for corn in feed and ethanol was stronger than thought, but did little to change market fundamentals, with speculators fueling the price gain, StoneX analyst Bevan Everett wrote in a note.

The USDA also said the US corn harvest – set to be the second biggest in history – was 21 percent complete, slightly below analysts’ expectations.

The large harvest and stocks should suppress prices, said Andrew Whitelaw at agricultural consultants Episode 3.