Corn futures slip on bearish USDA stocks forecast

USDA forecasts U.S. corn stocks above trade expectations

  

LONDON- Chicago corn futures fell to a more than one-week low on Thursday, as concerns about tight supplies were tempered after the U.S. Department of Agriculture (USDA) pegged a U.S. stocks forecast above market expectations.

Wheat and soybean prices were also weaker with a stronger dollar .DXY adding to downward pressure on prices.

The most-active corn futures on the Chicago Board of Trade were down 1.9% to $7.01-1/4 a bushel by 1109 GMT, near the session low of $6.98-1/2, its lowest since May 5.

Analysts said corn was under pressure from the USDA report, but said losses were checked by scepticism about the figures.

"Obviously the USDA's forecasts carry considerable weight. Much of the market though views these numbers as optimistic," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

The USDA projected U.S. 2021/22 corn ending stocks at 1.507 billion bushels, up from 1.257 billion bushels expected at the end of 2020/21, and above the average analyst estimate in a Reuters poll for 1.344 billion bushels

The most-active wheat futures Wv1 were down 0.8% at $7.23-3/4 a bushel.

Public holidays in much of Europe, including France and Germany, limited market participation on the continent.

Consultancy Strategie Grains kept unchanged its monthly forecast for soft wheat production in the European Union this year as a weather-related reduction for France was offset by favourable prospects in the southeast of the bloc. 

The most-active soybean futures Sv1 were down 0.4% at $16.35-3/4 a bushel, extending a retreat from a September 2012 high of $16.67-1/2 hit on Wednesday.

The USDA projected U.S. 2021/22 soybean ending stocks at 140 million bushels, roughly in line with trade expectations and up only slightly from the 120 million bushels expected at the end of 2020/21, a seven-year low.

(Additional reporting by Colin Packham in Canberra; editing by Rashmi Aich and Jason Neely) ((nigel.hunt@thomsonreuters.com; +44 (0) 7990 561421; Reuters Messaging: nigel.hunt.thomsonreuters.com@reuters.net))

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