Chicago Agriculture Commodities Finished Higher
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) Corn, Wheat and Soybean all finished higher Tuesday after the US Department of Agriculture (USDA) released its monthly World Agricultural Supply and Demand Estimates (WASDE) Report.
The most active Corn contract for December delivery added 4.75 cents, or 1.34%, to 3.6025 bu.
Sept Wheat delivery rose 8 cents, or 1.86%, to 4.385 bu.
Nov Soybean advanced 32 cents, or 3.03%, to 10.87 bu.
In the closely monitored WASDE Report, USDA lowered Corn beginning stocks for MY 2016/17 by 7-M bu, meanwhile, USDA raised MY 2016/17 US Corn use by 30-M bu.
In addition USDA raised the Corn exports estimates.
“Exports are projected 100-M bu higher on reduced competition from Brazil,as reflected by new-crop export sales that are well above a year ago,” USDA said in the report.
USDA lowered Brazil cCorn production for MY 2015/16 by 7.5-M tonnes.
Agriculture analysts noted Corn rebounded after USDA released the report at Noon Tuesday as the report forecast lower-than-expected stocks and ample demand for US Corn.
USDA rated US Wheat ending stocks at 1,105-M bu, which is the highest since MY 1988/89. However, USDA also raised US Wheat exports to 925-M bu, which would be the highest in 3 years. Meanwhile, USDA pegged global MY 2016/17 Wheat supplies at 983.0-M tonnes, up 9.2-M tonnes on increased production as well as increase in beginning stocks.
As for Soybean: USDA projected ending stocks for MY 2016/17 at 290-M bu, which analysts noted are in line with expectations and the results of the report were Neutral for Soybean future price Tuesday.
However, agriculture analysts noted Soybean rallied as the new weather forecast favored hotter and drier weather again in the US Midwest, boosting concerns that drier weather may dent Soybean progress there.