Chicago corn and wheat futures rose on Wednesday, extending gains after a closely watched U.S. Department of Agriculture (USDA) report showed lower-than-expected grain stocks, while soybeans traded little changed as higher planting estimates capped further gains.
The latest USDA acreage and quarterly stocks report helped reverse recent declines in grain prices by pointing to tighter supplies than many traders had anticipated, particularly for wheat.
The most-active wheat contract on the Chicago Board of Trade (CBOT) rose 0.42 percent to $5.91¾ per bushel, while corn gained 0.46% to US$4.38 per bushel. Soybeans edged up just 0.02% to US$11.44 per bushel.
The USDA estimated U.S. wheat plantings and quarterly wheat stocks below market expectations, while corn acreage came in above forecasts. However, corn stocks were also lower than analysts had expected, supporting a rebound from contract lows.
Analysts said the report improved market sentiment after weeks of pressure from expectations of abundant global supplies.
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“CBOT grains ended the month on a positive note, supported by the friendly USDA report,” said Donatas Jankauskas, an analyst at CM Navigator. “That positive momentum is continuing this morning at the start of the new month.”
The unexpected reduction in U.S. wheat acreage shifted attention back to concerns over this year’s drought-affected harvest.
Despite the rally, analysts cautioned that wheat prices continue to face pressure from strong production prospects in other major exporting countries.
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“A bearish tone remains, with strong production forecasts across Russia and Australia adding to an already well-supplied market,” said Sean Hickey, an analyst at Bendigo Bank Agribusiness.
Soybean prices remained largely unchanged after gaining alongside corn earlier in the week. The oilseed market came under pressure from the USDA’s higher estimate for U.S. soybean planting and a Canadian forecast projecting a sharp increase in canola acreage.
Weather conditions across the U.S. Midwest are also being closely monitored by traders.
Although high temperatures have affected parts of the region this week, forecasts for widespread rainfall and cooler conditions next week are expected to ease stress on developing corn and soybean crops, reducing concerns over potential production losses.
European grain markets were mixed during the session. Paris wheat futures edged up 0.12% to €202.25 per metric tonne, while Paris maize fell 0.42 percent to €235 per tonne. Rapeseed futures gained 0.15 percent to €506 per tonne.
Meanwhile, lower crude oil prices also weighed on oilseed markets, with U.S. benchmark West Texas Intermediate crude trading around US$68.70 per barrel, down about 1.15 percent.
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The USDA data reinforced expectations that while global grain supplies remain relatively comfortable, tighter U.S. inventories and weather developments could continue to influence price movements in the coming weeks.
