Chicago Agriculture Commodities Finished Higher
$SOYB, $CORN, $WEAT
Chicago Board of Trade (CBOT) Soybean advanced more than 5% Tuesday after the US Department of Agriculture (USDA) released a much-awaited monthly report.
The most active Corn contract for Jul delivery was higher 12 cents, or 3.25%, to close at 3.81 bu.
Jul Wheat delivery added 4.75 cents, or 1.04%, to close at 4.6125 bu.
Jul Soybean advanced 57.50 cents, or 5.60%, to close at 10.84 bu.
The US Department of Agriculture (USDA) released its monthly Report of World Agricultural Supply and Demand Estimates (WASDE) Tuesday, which contained USDA’s first forecasts for 2016/17 supply and demand and was carefully monitored by the traders.
According to the WASDE report, US Soybean production for MY 2016/17 is projected at 3,800-M bu, down 129-M from the previous year on lower harvested area and yields, while the US Soybean crush is projected at 1,915-M bu, up 35-M from MY 2015/16, Soybean exports are forecast at 1,885-M bu, + 145-M from the revised MY 2015/16 projection.
Agriculture analysts noted that after the report released, Soybean futures advanced to their highest level in 1.5 yrs. And the gain Tuesday was also the largest single day gainer since October 2010, according to the daily comment of the Farm Futures.
USDA also said Tuesday in its daily export system that private exporters reported export sales of 40,000 tonnes of Soybean oil for delivery to China and export sales of 20,000 tonnes of Soybean oil to unknown destinations.
Corn and Wheat also rose Tuesday, despite the fact that the WASDE report blew Bearish wind on them.
In the WASDE report, corn production is projected at 14.4-B bu, + 829-M from MY 2015/16, however, US Corn use for MY 2016/17 is projected 4% higher than for MY 2015/16, the US Wheat supplies for MY 2016/17 is projected + 6% from MY 2015/16.
Some agriculture analysts also noted that rains on Tuesday in the US mid-West gave additional export to Corn as the rain may delay the Corn planting.
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