Chicago corn futures rally on lower supply estimate

15:14, September 11, 2010      

Email | Print | Subscribe | Comments | Forum 

Chicago corn futures rallied to a 23-month high on Friday, as the U.S. Department of Agriculture ( USDA) announced that the U.S. corn supply will sink to its tightest in 15 years next year as the hot dry weather last month reduced U.S. corn yields. Wheat and soybean both dipped.

December corn added 7.5 cents, or 1.6 percent, to 4.7825 U.S. dollars per bushel. December wheat dipped 1.25 cents, or 0.2 percent, to 7.3675 dollars per bushel. November soybean lost 15 cents, or 1.4 percent, to 10.31 dollars per bushel.

USDA has lowered the average U.S. corn yields to 162.5 bushel per acre, from 165 bushels per acre on its August report. And the corn production was cut to 13.160 billion bushels from 13.365 billion bushels last month. USDA pegged 2010/11 corn ending stocks at 1.116 billion bushels, which is higher than analyst's expectation around 1.11 billion bushels, and much lower than last year's 1.312 billion bushels.

Traders noted that although the reduction in corn yield estimates is considered obviously supportive of corn, last week's export sale of corn only reached 680,200 tons, which is much lower than the upbeat data in recent weeks. Meanwhile, last week's wheat export sales totaled 1,613,400 tons, which has reached the highest level in three years due to strong demand of Egypt, the world's largest wheat importer. USDA has cut its estimates for overall wheat productions only by 2.72 million tons, which is much lower than trade expectation. USDA also slashed its forecast for total world usage by about 1.5 million tons, which resulted in a surprise increase in 2010/11 world wheat ending stocks. Wheat retreated for the third consecutive day as the USDA report eased investors' concern that the world may face a repeat of the 2008 world food crisis.

Traders indicated that the USDA supply and demand report was also considered negative for soybean, since USDA raised its estimates for soybean yields while traders expected a slight decline. And USDA only cut the 2010/11 ending stocks by 10 million bushels, which is much lower than analyst's expectation of 75 million bushels.

Source: Xinhua

(Editor:赵晨雁)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • The romantic myth of the Aegean 
The Aegean Sea is between the Greece Peninsula and Asia Minor Peninsula, dotted with many beautiful scenery islands, like a paradise on earth.  The ancient city of Troy in the east coast of Aegean, Turkey, and Mycenaean sites in the west bank of Greece, which have been archaeological discoveries, now are the must visit places in journey of the Aegean Sea. Above, these desolate dilapidated stone, the sunny blue sky and white clouds and vessels roaming at sea, arriving and departing travellers, add more romantic to the sea and the islands.
  • Chinese Permanent Representative to the United Nations Li Baodong (R) welcomes UN Secretary-General Ban Ki-moon in New York, the United States. Sept. 29, 2011. The Chinese permanent delegation to the UN held a reception on Thursday to celebrate the 62nd anniversary of the founding of the People's Republic of China and the 40th anniversary of China's returning to the UN. (Xinhua/Shen Hong)
  • Chinese ambassador to Bulgaria Guo Yezhou delivers a speech during the reception in Sofia, capital of Bulgaria, on Sept. 29, 2011. The Chinese Embassy in Bulgaria held a grand reception here on Thursday to celebrate the 62nd anniversary of the founding of the People's Republic of China. (Xinhua/Wang Meng)
  • A model presents creation by Mexican designer at Mexico Fashion Week, Mexico City, Sept. 29, 2011. (Xinhua/AFP Photo)
  • Tourists walk in front of the Reichstag building in Berlin, capital of Germany, Sept. 29, 2011. Fine weather on Thursday added to the mood of outdoor leisure for residents and tourists in Berlin. (Xinhua/Ma Ning)
  • Dancers from National Ballet Troupe of Spain perform during a rehearsal for the press at Taipei, southeast China's Taiwan, Sept. 29, 2011. The troupe will put on Dualia and La Leyenda, two folk dances here from Sept. 30 to Oct. 2. (Xinhua/Wu Ching-teng)
Hot Forum Discussion