PhotoAttractive/E+ via Getty Images
U.S. corn and soybean futures rose Thursday following a surprise cut in production estimates in the latest WASDE report from the U.S. Department of Agriculture.
In the latest world supply and demand report, the USDA cut its estimate for the domestic corn crop to 13.73B bushels and its outlook for soybean production to 4.28B, attributing the unexpected production cuts to a reduction in harvested area, which helped lift futures contracts for the two crops.
The report also trimmed its outlook for corn and soy production in drought-hit Argentina, where some traders said more cuts were warranted.
On the Chicago Board of Trade, corn (C_1:COM) for March delivery settled +2.3% to $6.71/bu, March soybeans (S_1:COM) ended +1.7% to $15.18 1/2/bu, and March wheat (W_1:COM) closed +0.4% to $7.42 3/4/bu.
ETFs: (NYSEARCA:CORN), (NYSEARCA:SOYB), (NYSEARCA:WEAT), (DBA), (MOO)
Meanwhile, the USDA reported less corn, soybeans and wheat on hand than expected by analysts, with corn stocks totaling 10.8B bushels, soybeans at 3.02B bushels and wheat at 1.28B bushels, all three down from the same time a year ago.
The latest forecasts coincide with concerns about tightening global grain supplies and rising food prices.
