Corn retreats after rally on lower than expected US stockpiles
Updates prices
CANBERRA/PARIS, Oct 1 (Reuters) -Chicago corn futures declined on Tuesday after reaching a three-month high in the previous session when a U.S. government estimate of corn stockpiles fell short of trade expectations, triggering a rush of short-covering.
Soybean and wheat futures also fell.
The most active corn contract on the Chicago Board of Trade (CBOT) Cv1 was down 0.3% at $4.23-1/2 a bushel by 1008 GMT, after climbing to $4.28 on Monday for its highest since June 27.
CBOT wheat Wv1 eased by 0.05% to $5.83-3/4 a bushel while soybeans Sv1 lost 0.7% to $10.50 a bushel.
All three contracts have made partial recoveries after recent four-year lows on plentiful supply.
The U.S. Department of Agriculture said on Monday that U.S. farmers and merchants held 1.76 billion bushels of corn as of Sept. 1, up 29% year on year and the most since 2020, but below analyst expectations of 1.844 billion bushels.
The data showed demand for corn in feed and ethanol was stronger than expected but did little to change market fundamentals, with speculators fuelling the price gain, StoneX analyst Bevan Everett wrote in a note.
The USDA also said that the U.S. corn harvest - set to be the second biggest in history - was 21% complete, slightly less advanced than analysts expected.
The large harvest and stocks are likely to suppress prices, said Andrew Whitelaw at agricultural consultant Episode 3.
"We have a massive crop and also a period where a lot of farmers haven't sold that much. Selling will come at some point, and we could see that over the next few months," he added.
However, analysts at JPMorgan were bullish on corn, pointing to lower production in Ukraine and Russia after dry weather, less corn planting in Argentina after a leafhopper insect infestation and low rainfall in parts of the Americas.
"We continue to look for lower revisions to the USDA's U.S. yield projections over the months ahead," they said.
Meanwhile, U.S. Sept. 1 soybean and wheat stocks rose and were the largest since 2020, the USDA said, but traders are concerned about dry weather in leading soy producer Brazil and top wheat exporter Russia.
Wheat export prices in Russia rose last week even as the pace of shipments picked up.
Prices at 1008 GMT | |||
Last | Change | Pct Move | |
CBOT wheat Wv1 | 583.75 | -0.25 | -0.04 |
CBOT corn Cv1 | 423.50 | -1.25 | -0.29 |
CBOT soy Sv1 | 1050.00 | -7.00 | -0.66 |
Paris wheat BL2Z4 | 224.00 | 1.75 | 0.79 |
Paris maize EMAc1 | 210.25 | 1.00 | 0.48 |
Paris rapeseed COMc1 | 472.00 | 2.00 | 0.43 |
WTI crude oil CLc1 | 67.03 | -1.14 | -1.67 |
Euro/dlr EUR= | 1.11 | 0.00 | -0.39 |
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne | |||
Reporting by Peter Hobson and Sybille de La Hamaide
Editing by Sherry Jacob-Phillips, Varun H K and David Goodman
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