U.S. agricultural futures fall | The Star


CHICAGO, Jan. 12 (Xinhua) — Chicago Board of Trade (CBOT) agricultural futures fell across board on Friday, led by corn.

The most active corn contract for March delivery plunged 10.75 cents, or 2.35 percent, to settle at 4.47 U.S. dollars per bushel. March wheat fell 7.75 cents, or 1.28 percent, to settle at 5.96 dollars per bushel. March soybean lost 12.25 cents, or 0.99 percent, to settle at 12.2425 dollars per bushel.

CBOT agricultural futures were sharply lower following the bearish U.S. Department of Agriculture January Crop Report and the World Agricultural Supply and Demand Estimate report. The report shows that U.S. combined 2023-2024 corn, soybean and wheat stocks rose 55 million bushels with corn up 31 million bushels, soybeans up 35 million bushels and wheat down 11 million bushels. The biggest surprise of the report was larger 2023 U.S. corn and soybean yields. The addition of 12 million metric tons to world grain stocks is also bearish.

The report raised U.S. 2023 corn yield to a new record of 177.3 bushels per acre (BPA). The United States produced a record large corn crop of 15.34 billion bushels. The report adjusted U.S. corn demand upwards by 75 million bushels, which produced an end stock of 2,162 million bushels. The report opened an additional 15-25 cents of downside price risk with March corn futures projected to drop to 4.30-4.40 dollars.

World corn stocks were raised by 10 million metric tons to 325 million metric tons.

The 2023 U.S. soybean yield was raised by 0.7 BPA, which raised the total crop to 4,165 million bushels, up 24 million bushels from November. The report left U.S. soybean demand unchanged, increasing 2023-2024 stocks to 280 million bushels.

The 2024 Brazilian soybean crop was lowered by 4 million metric tons to 157 million metric tons, while Argentina’s soybean crop was raised 2 million metric tons to 50 million metric tons. World 2023-2024 soybean end stocks hold steady at 114 million metric tons.

The report trimmed 2023-2024 U.S. wheat carryover by 12 million bushels, and lowered 2023-2024 U.S. wheat end stocks to 648 million bushels.

EU wheat end stocks were lifted 2.5 million metric tons on larger imports and lower exports. World wheat stocks rose 2 million metric tons to 260 million metric tons.

Focus now turns to Brazilian soybean yield data in the weeks ahead. Chicago-based research company AgResource holds that this is no place for new sales.

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