U.S. agricultural futures close mixed

By Xu Jing
  • World
  • Saturday, 10 Jun 2023

CHICAGO, June 9 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures closed mixed on Friday, with corn falling and wheat and soybean rising.

The most active corn contract for July delivery fell 6 cents, or 0.98 percent, to settle at 6.0425 U.S. dollars per bushel. July wheat rose 4 cents, or 0.64 percent, to settle at 6.3025 dollars per bushel. July soybean gained 23.25 cents, or 1.71 percent, to settle at 13.865 dollars per bushel.

The U.S. Department of Agriculture (USDA) June Crop Report held little fanfare with 2023-2024 U.S. corn end stocks rising 35 million bushels, 2023-2024 U.S. soybean end stocks rising 15 million bushels and 2023-2024 U.S. wheat end stocks rising 6 million bushels. The market attention will turn back to U.S. and world weather.

The USDA World Agricultural Supply and Demand Estimate report raised estimate of 2022-2023 U.S. corn end stocks by 35 million bushels to 1,452 million bushels based on a 50-million-bushel cut in U.S. 2022-2023 corn exports to 1,750 million bushels and a reduction in imports of 15 million bushels to 25 million bushels.

2023-2024 U.S. corn end stocks were raised by 35 million bushels to 2,257 million bushels amid the additional old crop supply. The report made no change to its 2023 U.S. corn yield at a record large 181.5 bushels per acre.

2022-2023 world corn end stocks held steady at 297 million metric tons, with Brazilian corn crop rising 2 million metric tons to 132 million metric tons, balancing against a 2-million-metric-ton fall in Argentine crop to 35 million metric tons. World corn trade was unchanged at 176.5 million metric tons.

The report raised 2022-2023 U.S. soybean end stocks to 230 million bushels with a 15-million-bushel reduction in U.S. soybean exports to 2,000 million bushels. U.S. 2023-2024 soybean end stocks were raised by 15 million bushels with yield left at a lofty 52 bushels per acre.

World 2022-2023 soybean end stocks were 101.3 million metric tons, with Argentine crop cut 2 million metric tons to 25 million metric tons, and Brazilian soybean crop left at 156 million metric tons.

USDA wheat data was neutral to slightly bearish. The U.S. balance sheet was left mostly untouched, while global wheat production was hiked 10.4 million metric tons amid yield increases in Russia, Ukraine and Europe.

The report projects major wheat exporter stocks in 2023-2024 at 59.2 million metric tons, as against 55.7 million metric tons in May and 63.7 million metric tons in 2022-2023. U.S. 2023-2024 wheat end stocks were raised to 562 million bushels to account for larger winter output.

Market has done little post the report. It is immediately back to watching U.S. EU, and Black Sea weather patterns. The need for rain is immediate. Chicago-based research company AgResource holds the risk is to the upside next week as rain is less than expected.

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