Corn Eases After USDA Global Stocks Report
Chicago corn ended lower on Friday after the U.S. Department of Agriculture assessed global supply and demand within analyst estimates.
Wheat strengthened as global supply shrank on Chinese feed consumption, while soybeans eased on larger stocks in South America.
The most active corn contract on the Chicago Board of Trade ended 2-1/2 cents lower at $5.77-1/4 per bushel, after reaching $5.95 in earlier trading.
CBOT wheat added 10 cents to $6.38-3/4 per bushel. CBOT soybeans fell 12-1/4 cents to $14.03 per bushel.
In its monthly World Agricultural Supply and Demand Estimates report, the U.S. Department of Agriculture reported domestic corn stockpiles will fall to 1.352 billion bushels by Sept. 1, down from 1.502 billion bushels in its March outlook, but in line with analyst expectations.
“On the corn, a lot of this is already dialed into the market,” said Don Roose, president of U.S. Commodities.
Chinese imports have bolstered global demand. The country’s agriculture ministry on Friday more than doubled its forecast of 2020/21 corn imports to 22 million tonnes, bringing it closer to market estimates.
Wheat gained as global stockpiles also fell to 295.52 million tonnes, compared to trade estimates of 301.59 million tonnes.
Soybeans fell on higher production from South America, as the USDA pegged Brazil’s 2020/2021 crop at 136 million tonnes, above even Brazil’s projection.
Traders said despite global stocks pressure, soybeans may see support from corn, as U.S. stocks for both commodities remain tight.
“It’s going to be a fight between whether the beans pull down the corn and wheat or the corn and wheat pull up the beans, based upon those world numbers,” said Mike Zuzolo, president of Global Commodity Analytics.
Source: Reuters (Reporting by Christopher Walljasper in Chicago; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by David Gregorio)