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Corn hits over one-week low as USDA production forecast beats estimates

05/13/2021 | 12:11am EDT

* USDA pegs global supplies above forecasts

* Soybeans fall on stronger dollar

* Wheat follows corn lower

CANBERRA, May 13 (Reuters) - U.S. corn futures fell more than 1% to hit a more than one-week low on Thursday, as concerns about global supplies were tempered after the U.S. Department of Agriculture (USDA) pegged a production forecast above market expectations.

Soybeans fell nearly 1% to fall from a September 2012 high, while wheat also slid.

The most-active corn futures on the Chicago Board of Trade were down 1.4% to $7.05 a bushel by 0346 GMT, near the session low of $6.98-1/2, its lowest since May 5. Corn closed down 1% on Wednesday.

Analysts said corn was under pressure from the USDA report, but said losses were checked by scepticism about the figures.

"Obviously the USDA's forecasts carry considerable weight. Much of the market though views these numbers as optimistic," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

The USDA projected U.S. 2021/22 corn ending stocks at 1.507 billion bushels, up from 1.257 billion bushels expected at the end of 2020/21, and above the average analyst estimate in a Reuters poll for 1.344 billion bushels.

The USDA also lowered its estimate of Brazil's 2020/21 corn crop to 102 million tonnes, from 109 million tonnes last month, while Brazilian government supply agency Conab lowered its forecast to 106.413 million tonnes, from 108.966 million tonnes in April.

The most-active wheat futures were down 0.5% to $7.26-1/4 a bushel, after closing down 1.6% on Wednesday.

The most-active soybean futures were down 1% to $16.26-1/4 a bushel, after gaining 1.7% in the previous session, when prices hit a September 2012 high of $16.67-1/2.

While slipping lower, soybeans have shrugged of the impact of the USDA report, but a stronger dollar was denting export prospects, analysts said.

The USDA projected U.S. 2021/22 soybean ending stocks at 140 million bushels, roughly in line with trade expectations but up only slightly from the 120 million bushels expected at the end of 2020/21, a seven-year low.

(Reporting by Colin Packham; Editing by Rashmi Aich)

© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
COMMONWEALTH BANK OF AUSTRALIA -1.03% 99.2 End-of-day quote.20.81%
CORN FUTURES (C) - CBR (FLOOR)/C1 0.68% 664.25 End-of-day quote.36.31%
CORN?FUTURES (SETTLEMENT ONLY) (ZC) - CBR (FLOOR)/C11 -2.27% 498 End-of-day quote.0.00%
S&P GSCI CORN INDEX -1.49% 448.9164 Delayed Quote.14.26%
S&P GSCI SOY BEANS INDEX -0.88% 512.456 Delayed Quote.-0.67%
SOYBEAN MEAL FUTURES (ZM) - CBE (ELECTRONIC)/C1 -2.67% 353.6 End-of-day quote.-14.11%
WHEAT FUTURES (W) - CBR (FLOOR)/C1 1.57% 661.25 End-of-day quote.1.64%
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