AIRLINK 204.45 Increased By ▲ 3.55 (1.77%)
BOP 10.09 Decreased By ▼ -0.06 (-0.59%)
CNERGY 6.91 Increased By ▲ 0.03 (0.44%)
FCCL 34.83 Increased By ▲ 0.74 (2.17%)
FFL 17.21 Increased By ▲ 0.23 (1.35%)
FLYNG 24.52 Increased By ▲ 0.48 (2%)
HUBC 137.40 Increased By ▲ 5.70 (4.33%)
HUMNL 13.82 Increased By ▲ 0.06 (0.44%)
KEL 4.91 Increased By ▲ 0.10 (2.08%)
KOSM 6.70 No Change ▼ 0.00 (0%)
MLCF 44.31 Increased By ▲ 0.98 (2.26%)
OGDC 221.91 Increased By ▲ 3.16 (1.44%)
PACE 7.09 Increased By ▲ 0.11 (1.58%)
PAEL 42.97 Increased By ▲ 1.43 (3.44%)
PIAHCLA 17.08 Increased By ▲ 0.01 (0.06%)
PIBTL 8.59 Decreased By ▼ -0.06 (-0.69%)
POWER 9.02 Decreased By ▼ -0.09 (-0.99%)
PPL 190.60 Increased By ▲ 3.48 (1.86%)
PRL 43.04 Increased By ▲ 0.98 (2.33%)
PTC 25.04 Increased By ▲ 0.05 (0.2%)
SEARL 106.41 Increased By ▲ 6.11 (6.09%)
SILK 1.02 Increased By ▲ 0.01 (0.99%)
SSGC 42.91 Increased By ▲ 0.58 (1.37%)
SYM 18.31 Increased By ▲ 0.33 (1.84%)
TELE 9.14 Increased By ▲ 0.03 (0.33%)
TPLP 13.11 Increased By ▲ 0.18 (1.39%)
TRG 68.13 Decreased By ▼ -0.22 (-0.32%)
WAVESAPP 10.24 Decreased By ▼ -0.05 (-0.49%)
WTL 1.87 Increased By ▲ 0.01 (0.54%)
YOUW 4.09 Decreased By ▼ -0.04 (-0.97%)
BR100 12,137 Increased By 188.4 (1.58%)
BR30 37,146 Increased By 778.3 (2.14%)
KSE100 115,272 Increased By 1435.3 (1.26%)
KSE30 36,311 Increased By 549.3 (1.54%)
Markets

Corn, soy extend rally after USDA acreage surprise

  • USDA pegged US corn, soybean area below market expectations.
  • Acreage estimates fan supply worries as US stocks decline.
  • Wheat edges higher.
Published July 1, 2021

PARIS/SINGAPORE: Chicago corn rose more than 3% on Thursday and soybeans also rallied as lower-than-expected US acreage estimates a day earlier fuelled supply concerns as some crops faced hot, dry weather.

Wheat edged higher as the rally in corn and soybeans offset a higher than anticipated US area projection and supply pressure from the start of winter wheat harvesting.

On Wednesday, corn futures climbed by their daily exchange-imposed limit after the US Department of Agriculture (USDA) pegged plantings of the crop at 92.692 million acres, below an average trade expectation of 93.787 million.

The agency said soybean plantings totalled 87.555 million acres, compared to analysts' average estimate of 88.955 million.

"The planting report raises supply concerns on longer term," said Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney.

"But the main focus now is still weather as the corn crop could swing 20-40 million tonnes on that alone."

After rain this month eased worries about crop stress in part of the US Midwest, forecasts for hot weather and limited rain in early July have underscored risks for northern and western growing belts.

The most-active corn contract on the Chicago Board of Trade (CBOT) was up 3.3% to $6.07-3/4 a bushel at 1213 GMT.

CBOT November soybeans were up 1.7% to $14.22-1/4 a bushel.

"The USDA has managed to surprise the market once again," Commerzbank said of the corn and soybean area figures.

"Furthermore, the inventory data (...) paint an even tighter picture than had already been anticipated."

In its quarterly stocks report, also released on Wednesday, the USDA said domestic corn and soybean stocks on June 1 were at their lowest in years and slightly below average trade expectations.

CBOT September wheat was up 1.3% at $6.88 a bushel.

Comments

Comments are closed.