CHICAGO, Jan. 12 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures rose across the board by large margins on Tuesday, led by corn.
The most active corn contract for March delivery soared 25 cents, or 5.08 percent, to settle at 5.1725 dollars per bushel. March wheat rose 30.25 cents, or 4.77 percent, to settle at 6.65 dollars per bushel. March soybean gained 45.75 cents, or 3.33 percent, to close at 14.1825 dollars per bushel.
CBOT agricultural futures rose on bullish U.S. Department of Agriculture (USDA) January Crop Reports, Chicago-based research company AgResource noted. Both U.S. 2020 corn and soybean yields fell farther than expected with the 2020 U.S. corn yield down 3.8 bushels per acre (BPA) for a production fall of 325 million bushels. The 2020 U.S. soybean yield fell another 0.5 BPA to 50.2 BPA for a production loss of 35 million bushels.
U.S. December 1st corn stocks came out close to last year's 11,322 million bushels, 320 million bushels below trade expectations and considered bullish.
The World Agricultural Supply and Demand Estimates (WASDE) report adjusted downward U.S. 2020-2021 corn export estimate by 100 million bushels to 2,550 million bushels.
The report cut Brazilian corn crop by one million metric tons to 109 million metric tons with the Argentine crop cut by 1.5 million metric tons to 47.5 million metric tons.
WASDE report lowered 2020-2021 soybean stocks to 140 million bushels. The loss of 35 million bushels of 2020 U.S. soybean production combined with a 5-million-bushel increase in crush and 30-million-bushel rise in U.S. soybean exports was offset by a 20-million-bushel gain in imports and 13-million-bushel cut in the residual.
WASDE report left Brazilian soybean crop estimate unchanged at 133 million metric tons.
WASDE report forecast 2020-2021 U.S. wheat end stocks at 836 million bushels, a decline of 26 million bushels.
The report trimmed 2020-2021 world wheat stocks by 3.3 million metric tons to 313.2 million metric tons. The key for wheat prices going forward is Russia and the potential for a hike in its export duty that could last into the new crop year, AgResource noted.
AgResource holds that U.S. corn and soybean demand rationing will become more acute in the weeks ahead. The market's sensitivity to China buying of U.S. corn and soybean will be increasing. AgResource remains bullish with a CBOT downtrend unlikely until Northern Hemisphere crops are seeded in May/June.