Chicago | Reuters—Chicago Board of Trade corn futures jumped to a five-and-a-half month high on Tuesday, after the U.S. Department of Agriculture slashed domestic corn supply forecast by more than the market had expected.
Soybean futures also rose, gaining support from USDA’s forecast for U.S. soyoil exports at 1.1 billion pounds, up from 600 million pounds. Wheat futures firmed following USDA cuts to the European Union and Russian crops.
The most active corn contract on the Chicago Board of Trade (CBOT) Cv1 ended 7-1/4 cents higher at $4.49 a bushel, having reached highs not seen since June 25.
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CBOT soybeans Sv1 ended up 4-3/4 cents at $9.94-3/4 a bushel, while wheat Wv1 settled up 3 cents at $5.61-3/4 a bushel.
Expected hefty export demand for U.S. corn contributed to smaller-than-forecast ending stocks, according to USDA data and market analysts.
U.S. corn ending stocks for 2024-25 are projected at 1.738 billion bushels, down from 1.938 billion in November, the USDA said in its monthly report. Analysts expected 1.906 billion, according to a Reuters poll.
Global corn supplies have been tightening and low prices in the United States have drawn eager buyers on the hunt for the grain.
Importers in Spain are buying U.S. corn at a pace not seen in at least six years, as high South American prices and crop quality concerns in Ukraine prompted a shift away from the country’s traditional suppliers.
Weather issues have also affected the quality of the crop in countries like Brazil, said Karl Setzer, co-founder of Consus Ag Consulting.
In wheat, crops in top exporter Russia may be in better condition than leaked data suggested last week, Russian agriculture analysts said.
However, data from the state weather forecasting agency indicated an unprecedented 37 per cent of Russia’s winter crop was in poor condition or had not sprouted due to low moisture levels.
—Additional reporting by Peter Hobson in Canberra and Sybille de La Hamaide in Paris
