Chicago Corn futures hit their highest level in 5 1/2 months on Tuesday after the U.S. Department of Agriculture (USDA) cut its domestic supply forecast more than expected. what the market expected.
Soybean futures also rose, supported by the USDA’s forecast that U.S. soybean oil exports will reach 1.1 billion pounds, up from 600 million pounds previously. Wheat futures strengthened following USDA cuts to European Union and Russian crops.
The most active corn contract on the Chicago Board of Trade (CBOT) rose 4.75 cents to $4.4650 a bushel, hitting the highest price since June 25. Chicago soybeans rose 3 cents to $9.93 a bushel, while wheat gained 2.25 cents to $5.61 a bushel.
Strong export demand for U.S. corn contributed to lower-than-expected ending stocks, according to USDA data and market analysts.
U.S. ending corn stocks for 2024-2025 are projected at 1.738 million bushels, down from 1.938 million in November, the USDA said in a monthly report. Analysts expected 1.906 million, according to a Reuters poll.
Global corn supplies have been tightening, and low prices in the United States have attracted eager buyers, who are hunting for the grain.
Spanish importers are buying American corn at a rate unprecedented for at least six years.
