US corn futures rose more than 1 percent on Wednesday after the US Department of Agriculture's forecast for global inventories at the end of the 2017/18 marketing year fell below trade expectations.
Soyabean futures hit a six-week high after the USDA's reports were released, buoyed by the government's forecast for a smaller-than-expected rise in domestic ending stocks for 2017/18. But the market turned down as traders shifted their attention to rising global inventories.
Wheat was modestly higher at midsession.
As of 12:47 pm CDT (1747 GMT), Chicago Board of Trade July corn was up 5 cents at $3.71-1/2 per bushel. CBOT July wheat was up 1-1/2 cents at $4.31. Corn futures advanced after the USDA's first official supply and demand forecasts for the 2017/18 marketing year pegged world corn ending stocks at 195.27 million tonnes. The figure was down from 223.90 million expected at the end of 2016/17 and below an average of analyst estimates for 209.72 million. The USDA's forecasts of domestic corn ending stocks for both 2016/17 and 2017/18 also came in below the average trade expectations.
In soyabeans, the CBOT July contract was down 4-1/2 cents at $9.69-1/2 a bushel, retreating after a post-report jump to $9.89, its highest since March 27. The USDA projected US 2017/18 soya ending stocks at 480 million bushels, well below the average pre-report trade estimate of 563 million. But on the global front, the USDA raised its forecast of 2016/17 soya ending stocks to 90.1 million tonnes, topping a range of trade estimates. Wheat futures were modestly higher but trade was choppy. The USDA forecast global wheat ending stocks in 2017/18 at 258.29 million tonnes, above a range of trade expectations. But the government's initial estimate of US winter wheat production, at 1.246 billion bushels, fell below the average trade estimate of 1.293 billion.
The USDA's forecasts of domestic wheat ending stocks were roughly in line with trade expectations.