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GRAINS-Wheat drops most since August after USDA acreage surprise
(Updates U.S. market activity to close)
By Michael Hirtzer
CHICAGO, Jan 12 (Reuters) - Chicago wheat futures
tumbled nearly 3 percent on Friday, notching their biggest daily
decline since August, after the U.S. Department of Agriculture
showed larger-than-expected U.S. winter wheat plantings.
Corn futures fell to life-of-contract lows, while
soybeans turned higher in a recovery from four-month lows
in the wake of the midday USDA supply and demand data.
The government raised its estimate for U.S. corn production
due to record-large yields and trimmed its estimate for the U.S.
soybean harvest, even as that crop remained the biggest ever.
The USDA estimated 2018 winter wheat plantings at 32.608
million acres, the smallest since 1909 but above analysts'
expectations for 30.100 million to 32.000 million.
"The biggest thing was the wheat acres being up instead of
down," said Linn & Associates analyst Roy Huckabay. "I've got
1.5 million more wheat acres than I thought I had, and that
means I've got to reduce my new-crop corn and bean acres."
Chicago Board of Trade March wheat finished 12-3/4
cents lower at $4.20-1/2 per bushel, its lowest price since Dec.
CBOT March corn dipped to a contract low of $3.45-1/2,
before trimming losses to settle at $3.46-1/4, down 2-1/2 cents.
"We were talking about a (corn) reduction, and we didn't get
it, and so I think that's why we're seeing the market sell off,"
said Price Futures Group analyst Jack Scoville.
CBOT March soybeans gained 10-1/2 cents to $9.60-1/2
per bushel, rebounding from a session low of $9.44-1/2. It was
the biggest one-day bounce in soybeans in 2-1/2 weeks, but
prices still lost 0.9 percent for the week.
The USDA earlier announced a sale of 320,000 tonnes of U.S.
corn to unknown destinations, the largest one-day sale of the
crop since November.
China's soybean imports in December were nearly
record-large, according to Reuters calculations based on customs
data. The country, the world's largest soybean buyer, was
experiencing strong demand in the run-up to next month's Lunar
New Year holiday.
(Additional reporting by Karl Plume in Chicago, Mark Weinraub
in Chicago, Nigel Hunt in London and Naveen Thukral in
Singapore'; Editing by Lisa Von Ahn and Leslie Adler)
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