CHICAGO: Corn futures fell back from five-and-half-month highs reached earlier on Wednesday after the US Department of Agriculture said on Tuesday that US end-of-season stocks would drop to a two-year low.

Soybean futures firmed on strength from outside markets, analysts said, while wheat edged higher on cuts to the USDA’s ending stock estimates.

The most-active corn contract on the Chicago Board of Trade (CBOT) ended down 3/4 cent at $4.48-1/4 a bushel after earlier reaching highs not seen since June 25. CBOT soybeans ended up 3/4 cent at $9.95-1/2 a bushel, while wheat settled up 1-1/2 cents at $5.63-1/4 a bushel, having hit its highest level in more than two weeks. The USDA raised its estimate for 2024/25 US corn exports to the second-highest levels on record and increased its forecast for how much corn will be used to produce ethanol, according to data released on Tuesday.

The result of that improved demand was a reduction in the USDA’s projection for US corn ending stocks to 1.738 billion from its previous estimate of 1.938 billion bushels, far below analysts’ expectations of 1.906 billion bushels. “We’re getting a little follow through from yesterday’s gains,” said Randy Place, analyst at the Hightower Report. In soybeans, USDA showed 2024-25 US ending stocks at 470 million bushels, unchanged from November.

Soy futures were supported by strength in equities, metals and energies, Place said. In wheat, the US is likely to have 795 million bushels at the end of the season, the USDA said on Tuesday, cutting its forecast from 815 million bushels a month ago.

Wheat gained support on Wednesday as India said it would lower its limits on how much wheat millers and retailers can hold in stock, in an attempt to keep the price of wheat low.

“If they’re worried about high prices and they’re trying to do things to bring prices down, reducing exports and bringing in imports would be the next step,” said Place.