You are here
GRAINS-Corn and soybean prices rise as U.S. crop forecasts trimmed
* Corn rises as USDA makes surprise cut in U.S. yield forecast
* China's September soy imports slightly lower year on year (Adds quotes, updates prices)
By Nigel Hunt
LONDON, Oct 12 (Reuters) - Chicago corn and soybean futures rose on Friday, boosted by lower forecasts for U.S. crops, while wheat prices were underpinned by diminished production prospects in Russia and Australia.
The most-active corn contract on the Chicago Board of Trade was up 0.1 percent at $3.69-1/2 a bushel by 1045 GMT, having peaked on Thursday at $3.73, its highest since August 22.
CBOT's most active soybean contract was up 0.7 percent at $8.64-1/4 a bushel.
The U.S. Department of Agriculture (USDA) surprisingly trimmed its forecasts for domestic corn and soybean production on Thursday, with the soy cut stemming from a reduction in acreage while the corn harvest will be hit by lower than expected yields.
"This provision (lower corn yields) has surprised the market and has provoked a bullish reaction," Agritel analysts said in a market note.
The corn crop was seen at 14.778 billion bushels, based on an average record yield of 180.7 bushels per acre, the government said in its monthly supply and demand report.
Soybean production was pegged at 4.690 billion bushels, with yields averaging a record 53.1 bushels per acre.
China, the world's top soybean buyer, brought 8.01 million tonnes of the oilseed in September, down from 9.15 million tonnes in August and below the 8.11 million tonnes in September 2017, according to Reuters calculations based on data released on Friday by the General Administration of Customs.
CBOT's most active wheat contract was up 0.8 percent at $5.12 a bushel, with the market underpinned by a downward revision to USDA crop forecasts for Russia and Australia.
"This reduces global ending stocks to 260 million tonnes, though this would still constitute the second-highest level of all time. That said, almost half of this total is attributable to China, whose stocks are not available to the world market," Commerzbank said in a market note.
December milling wheat on Paris-based Euronext was unchanged at 203.50 euros a tonne. (Additional reporting by Naveen Thukral in Singapore; Editing by Sunil Nair and David Goodman)
© Copyright Thomson Reuters 2018. Click For Restrictions - http://about.reuters.com/fulllegal.asp