July 12, 2017 / 9:23 PM / in 4 months

GRAINS-Corn falls 4 pct after USDA data; soy, wheat also decline

    * USDA raises U.S. corn ending stocks forecasts
    * U.S. Midwest rains bolster crops, pressure prices
    * Wheat sags after USDA raises new-crop stocks view

 (New throughout; updates prices; adds quotes; changes byline;
dateline previously PARIS/SYDNEY)
    By Julie Ingwersen
    CHICAGO, July 12 (Reuters) - U.S. corn futures fell 4
percent on Wednesday after the U.S. Department of Agriculture
raised its U.S. old- and new-crop corn ending stocks forecasts
more than most analysts expected.
    Wheat and soybeans followed corn lower, with rains in Iowa
and Illinois this week adding pressure.
    Chicago Board of Trade September corn settled down
16-1/4 cents at $3.85-1/2 per bushel. August soybeans fell
8-1/2 cents at $10.20-3/4 a bushel, and September wheat
fell 16 cents at $5.37 a bushel.
    Corn posted the biggest declines on a percentage basis after
the USDA in a monthly report raised its forecasts of U.S. corn
stocks at the end of the 2017/18 marketing year to 2.325 billion
bushels, up from 2.110 billion in June and above an average of
analyst estimates for 2.181 billion.
    "We still have such big carry-in stocks that even with lower
acres, we're still in a pretty comfortable position," said Alex
Norton, director of risk management with Beeson and Associates.
    The USDA also left its U.S. 2017 corn yield forecast
unchanged at 170.7 bushels per acre. Some analysts had expected
a reduction due to stressful hot and dry conditions in parts of
the Midwest.
    "With the weather that we've had, I think the trade is
anticipating the yields will be something less than what we have
now," said Don Roose, president of U.S. Commodities.
    CBOT soybeans briefly turned higher after the USDA lowered
its soy ending stocks forecasts for both the 2016/17 and 2017/18
marketing years. But welcome rains the last two days in Iowa and
Illinois, the top two producers of corn and soybeans, pressured
futures, along with updated midday forecast models calling for
milder conditions in the Midwest.
    "A little bit more rain in the forecast is considered a
little bearish for soybeans, after $1.40 (per bushel) run from
its lows," said Brian Hoops of Midwest Market Solutions.
    Wheat fell after the USDA raised its forecast of U.S.
2017/18 wheat ending stocks to 938 million bushels, from 924
million in June, bucking most trade expectations for a decline.

    The USDA lowered its estimate of U.S. 2017/18 all-wheat
production to 1.760 billion bushels, down from 1.824 billion in
June but above the average estimate of 1.748 billion.
    Some analysts expect the USDA to lower its estimate of the
U.S. spring wheat crop in future reports given drought in the
northern U.S. Plains.
    "It usually takes a few reports to get all the damage
reflected in the numbers," said Dan Cekander of DC Analysis. 
    CBOT settlement prices:      
                                  Net     Pct  Volume
                         Last  change  change        
 CBOT wheat     WU7    537.00  -16.00    -2.9   94071
 CBOT corn      CU7    385.50  -16.25    -4.0  195337
 CBOT soybeans  SQ7   1020.75   -8.50    -0.8   43340
 CBOT soymeal   SMQ7   336.00   -2.70    -0.8   22777
 CBOT soyoil    BOQ7    33.52   -0.29    -0.9   39844
    NOTE: CBOT September wheat, September corn and August
soybeans shown in cents per bushel, August soymeal in dollars
per short ton and August soyoil in cents per lb.

 (Additional reporting by Colin Packham in Sydney and Gus
Trompiz in Paris; Editing by Pritha Sarkar and Leslie Adler)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below