Wheat hits one-week top after USDA report; corn, soy also climb

(New throughout; updates with closing prices and USDA data;
changes dateline to CHICAGO, previous LONDON)
By Barbara Smith
CHICAGO, July 11 (Reuters) - U.S. wheat futures climbed to
their highest in more than a week after the U.S. Department of
Agriculture (USDA) lowered its forecast of global wheat
production in a monthly supply and demand report on Thursday.
Corn and soybeans followed the firm trend in wheat.
Chicago Board of Trade September wheat settled up
16-3/4 cents at $5.21-1/2 a bushel after reaching $5.23, its
highest since July 1.
CBOT September corn ended up 9-1/4 cents, or 1.8%, at
$4.44-1/4 a bushel and August soybeans rose 4-1/2 cents to
settle at $8.99 a bushel.
Wheat led the way up after the USDA in its July
supply/demand report lowered its forecast of 2019/20 wheat
production in Russia, the European Union, Australia and Canada.

"USDA basically slashed the global wheat production," said
Terry Reilly, senior analyst with Futures International, adding,
"The trade was caught off-guard because they were so focused on
corn and soybeans."
Reflecting the production cuts, the USDA lowered its
forecast of 2019/20 global wheat ending stocks to 286.46 million
tonnes, down from 294.34 million in June and near the low end of
a range of analyst expectations.
The USDA also trimmed its forecast of U.S. 2019/20 wheat
ending stocks to 1.0 billion bushels, lower than most analysts
expected, although its estimate of U.S. all-wheat production was
1.921 billion bushels, above an average of trade expectations.
"We still have to have a high enough quality (U.S.) crop to
compete in the export market, and there are a lot of questions
as to whether that quality is there," said Brian Hoops,
president of Midwest Market Solutions.
The U.S. winter wheat harvest was 47% complete as of July 7.

For corn, the USDA raised its production forecast to 13.875
billion bushels, based on its larger-than-expected June 28
planted acreage estimate of 91.7 million acres.
The government left its estimate of the U.S. corn yield
unchanged at 166.0 bushels per acre, while most analysts in a
Reuters survey expected a slight reduction.
Following widespread planting delays this spring, traders
await the USDA's Aug. 12 report in which the government expects
to release updated U.S. plantings figures for corn, soybeans and
several other crops.
"(The USDA) did not touch corn yield. I think some people
are disappointed by that," said Ted Seifried, chief ag market
strategist with Zaner Group. "They're punting until next month
because that's when we'll have an update on acreage," Seifried
For soybeans, the USDA lowered its U.S. 2019-20 soybean
production estimate to 3.845 billion bushels, down from 4.150
billion in June. The USDA cut its soybean yield estimate to 48.5
bushels per acre, from 49.5 in June.

CBOT settlement prices:
Last Net Pct Volume
change change
CBOT wheat WU9 521.50 16.75 3.2 79869
CBOT corn CU9 444.25 9.25 2.1 149292
CBOT soybeans SQ9 899.00 4.50 0.4 20316
CBOT soymeal SMQ9 312.40 1.70 0.5 14591
CBOT soyoil BOQ9 28.18 0.09 0.0 19670
NOTE: CBOT September wheat and corn and August soybeans shown
in cents per bushel, August soymeal in dollars per short ton and
August soyoil in cents per lb.

(Reporting by Barbara Smith; additional reporting by Colin
Packham in Sydney; editing by Jonathan Oatis)

First Published: 2019-07-11 03:55:56
Updated 2019-07-11 21:55:39

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