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U.S. soybean futures edge higher after USDA cuts harvest outlook

Published 12/11/2014, 07:01 AM
U.S. soybeans edge higher on USDA supply cut
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Investing.com - U.S. soybean futures edged higher on Thursday, after the U.S. Department of Agriculture lowered its forecast of 2014-15 soybeans ending stocks.

On the Chicago Mercantile Exchange, US soybeans for January delivery tacked on 3.62 cents, or 0.35%, to trade at 10.3550 a bushel during U.S. morning hours.

A day earlier, soybeans lost 17.2 cents, or 1.64%, to settle at $10.3200 a bushel.

The USDA estimated that U.S. soybean stockpiles will total 410 million bushels at the end of the 2014-15 season, below expectations for 427 million bushel and down from a previous forecast of 450 million.

The agency predicted that U.S. exports will hit 1.760 billion bushels, up from 1.720 billion forecast last month.

Gains were limited amid growing optimism over the soybean crop outlook in Brazil, a major soy exporter.

According to Brazil's crop agency, Conab, Brazilian farmers are expected to produce a record-high 95.8 million metric tons of soybeans, up from November's forecast of 90.5 million.

Meanwhile, US corn for March delivery traded at $3.9438 a bushel, up 0.75 cents, or 0.19%. Corn futures dipped 1.4 cents, or 0.38%, on Wednesday to close at $3.9360 a bushel.

The USDA expects U.S. corn reserves at the end of the 2014-15 season on August 31 to total 1.998 billion bushels, down from last month’s estimate of 2.008 billion.

However, global stockpiles will total 192.2 million metric tons, up from 191.5 million projected last month.

Elsewhere on the Chicago Board of Trade, US wheat for March delivery tumbled 7.00 cents, or 1.2%, to trade at $5.7513 a bushel, after hitting a daily low of $5.7500, the weakest level since December 1.

A day earlier, wheat prices lost 4.0 cents, or 0.68%, to end at $5.8160 after the USDA raised its global supply forecast.

The USDA said global inventories of wheat at the end of the 2014-15 season will total 194.9 million metric tons, above estimates of 191.75 million and up from a forecast of 192.9 million projected in November.

According to the agency, domestic wheat stockpiles as of May 31 will total 654 million bushels, up from a previous estimate of 644 million bushels.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.

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