Chicago Agriculture Commodities Finished Down
$WEAT, $CORN, $SYOB
US agriculture grain futures were down after federal forecasters projected larger-than-expected domestic supplies, owing in part to improved prospects for the Wheat crop in the Plains.
Wheat futures declined more than 3%, while Corn slid 2%, and Soybean prices dropped a bit.
In a monthly report, the US Department of Agriculture (USDA) boosted its forecast for US Wheat production and stockpiles for the season ending in May. The government said late-season rains had bolstered the health of the Wheat crop in the central Plains, though some areas have received excessive moisture that could diminish yields.
The USDA estimated that domestic Wheat output MY 2015-16 will total 2.121-B bu, topping analysts’ estimates of 2.096-B. The government said domestic Wheat reserves would total 814-M bu at the end of the MY next May, above analyst forecasts of 791-M bu.
Federal agriculture grain forecasters also said global Wheat supplies would rise next MY to about 202.4-M tonnes from an estimated 200.4-M tonnes in MY 2014-15.
Wheat futures for Jul delivery, the front-month contract, declined 18 3/4 cents, or 3.5%, to 5.13 1/2 a bushel at the Chicago Board of Trade (CBOT).
The USDA estimated that US Corn supplies on 31 August, the end of the MY 2014-15, total 1.876-B bu, above analysts’ forecasts for 1.858-B bu. It cited in part a reduction in its projection for the use of Corn in Ethanol production.
The government maintained its existing estimates for US Corn production this Fall, pegging output at 13.63-B bu, lower than analysts’ estimates for 13.651-B bu.
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The USDA projected larger-than-expected global Corn inventories.
It said world Corn stockpiles at the end of MY 2015-16 are expected to fall to 195.2-M tonnes from 197-M tonnes in MY 2014-15. Analysts estimated 191.8-M tonnes, and 192.4-M tonnes respectively..
Corn futures for Jul delivery fell 7 3/4 cents, or 2.1%, to 3.57 1/4 bu in Chicago trading.
Soybean prices settled lower after the USDA maintained its agriculture grain estimate for US Soybean production, but projected lower-than-expected domestic oilseed reserves for this season and next.
The government pegged Soybean output for MY 2015-16 at 3.850-B bu, the same as last month’s forecast.
The USDA estimated that US Soybean stockpiles at the end of MY 2015-16 will total 475-M bu, up from estimated inventories of 330-M bu in MY 2014-15 ending 31 August. Analysts had expected stockpiles next year to total 485-M bu, an increase from their estimate for this year of 342-M bu.
Globally, the government expects Soybean stockpiles at the end of MY 2015-16 to rise to 93.2-M tonnes from 83.7-M in MY 2014-15.
Soybean for Jul delivery slid 2 cents, or 0.2%, to 9.49 1/2 bu on the CBOT.
Stay tuned…
HeffX-LTN
Paul Ebeling
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