U.S. agricultural futures close mixed

  • World
  • Saturday, 12 Sep 2020

CHICAGO, Sept. 11 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures closed mixed on Friday, with corn and soybean rising and wheat falling.

The most active corn contract for December delivery rose 3.5 cents, or 0.96 percent, to close at 3.685 U.S. dollars per bushel. December wheat shed 6.25 cents, or 1.14 percent, to settle at 5.42 dollars per bushel. November soybean gained 18.5 cents, or 1.89 percent, to close at 9.96 dollars per bushel.

The U.S. Department of Agriculture (USDA) September Crop Report released Friday was neutral to slightly bearish, Chicago-based research company AgResource Research noted.

The derecho wind in Iowa and U.S. Midwest flash drought reduced total U.S. corn and soybean production by a combined 403 million bushels, with a 150-million-bushel cut in soybean and a 253-million-bushel cut in corn. This was less than expected in both summer row crops.

Corn yield in Illinois fell 1.9 bushels per acre (BPA) to 203 BPA, while the yield in Iowa was off 5.4 BPA to 191 BPA. Nevertheless, record corn yields were reported in 9 states of Minnesota, South Dakota, Wisconsin, Michigan, North Carolina, Kentucky, South Carolina, Georgia and New York.

AgResource saw the September USDA Crop report as slightly bearish, saying traders would be looking to actual combine yield data for direction in coming weeks.

USDA in its World Agricultural Supply and Demand Estimate report (WASDE) reduced 2020/2021 U.S. corn end stocks by 253 million bushels to 2,503 million bushels to account for the derecho winds across Iowa. U.S. 2020/2021 corn end stocks are the largest in 33 years. WASDE cut 2019/2020 U.S. ethanol use to 4,855 million bushels and exports to 1,770 million bushels.

World major crop end stocks were lowered 9.9 million metric tons to 719.8 million metric tons. 2020/2021 world corn stocks are forecast to rise 6 million metric tons above last year, even with expanded world corn trade to 186 million metric tons.

U.S. 2020/2021 soybean end stocks fell by 150 million bushels to 460 million bushels. Such stocks assume an annual export estimate of 2,125 million bushels. China took nearly 17 million metric tons of U.S. soybeans in 2019/2020 from the United States. Assuming non-China demand stays unchanged, this suggests that China will take 28 to 29 million metric tons from the United States in 2020/2021. It is estimated that China has booked 22 to 23 million metric tons of U.S. soybean currently.

U.S. 2020/2021 wheat end stocks were left steady at 925 million bushels with 975 million bushels of exports. The 2020/2021 Russian wheat crop was left at 78 million metric tons with exports of 37.5 million metric tons. Canada's 2020 wheat crop was raised to 36 million metric tons and Australia to 28.5 million metric tons. China's 2020/2021 wheat imports were raised one million metric tons to 7 million metric tons. The USDA wheat data leans bearish, AgResource said.

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