Chicago | Reuters—Chicago soy futures eased on Wednesday, pushed lower by Tuesday’s U.S. Department of Agriculture report that forecast higher-than-expected U.S. soybean stocks, and continued concerns over weak Chinese demand for U.S. soy, analysts said.
Corn futures ticked up on strong demand, as well as the USDA’s supply and demand report that showed tightening global corn stocks. Wheat turned lower in choppy trade.
The most-active soybean contract Sv1 on the Chicago Board of Trade (CBOT) settled down 15-3/4 cents to $10.27-3/4 per bushel while CBOT corn Cv1 settled up 6-1/4 cents at $4.90-1/4 a bushel.
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U.S. grains: Corn sets contract lows on expectations for big US crop
Chicago Board of Trade corn futures set contract lows and soybean futures sagged on Friday on expectations that beneficial weather for U.S. crops will lead to bumper harvests, analysts said.
CBOT wheat Wv1 settled down 2-3/4 cents to $5.74-1/2 per bushel.
In its monthly report, the USDA left its forecasts of U.S. soybean and corn end-of-season supplies unchanged, while analysts had expected reductions. The USDA also cut Argentina’s corn and soybean production outlook after hot and dry weather wilted crops.
However, global soybean supplies are still expected to be significant due to a bumper crop in top producer Brazil.
“There’s not much for the market to be bulled up on,” said Randy Place, an analyst at Hightower Report.
Corn futures received a hefty boost after the USDA pegged worldwide corn ending stocks below market expectations.
Corn production is particularly important because world inventories for 2024-25 are projected to drop to their lowest level in a decade due to robust demand and a smaller-than-anticipated U.S. harvest last year.
Brisk export demand for U.S. supplies lent support to futures. The USDA confirmed private sales of 365,000 metric tons of U.S. corn to Mexico on Monday and another 130,320 tons to undisclosed destinations on Wednesday.
Grain traders are monitoring approaching cold fronts in the U.S. Plains and Black Sea region, where concerns over freeze damage to the nascent winter wheat crops have been blunted by forecasts for snow, which helps to insulate the crops from frigid temperatures.
Wheat futures turned lower but drew underlying support from short covering. Commodity funds continue to hold a large net short position in wheat, making the market prone to bouts of short covering.
—Additional reporting by Ella Cao and Mei Mei Chu in Beijing and Gus Trompiz in Paris
