That would be the largest ending stocks number for the U-S since 2010-11.
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“The focus should be entirely on the old crop on this report and, with that, the stocks for corn and soybeans were smaller than expected”, said Rich Nelson, chief strategist for brokerage Allendale in Illinois.
CHICAGO-U.S. grain and soybeans futures gained in early trade Friday as traders squared positions ahead of a monthly government report and concerns eased somewhat over China’s economy. The front-month Chicago Board of Trade corn futures contract surged to its highest since June 30, 2014.
The agency also revised downward by 3 percent its total USA winter wheat production forecast, which is now expected to be 1.46 billion bushels.
Corn prices also rose in part due to anticipation the U.S. Department of Agriculture on Friday will lower its forecasts for this year’s corn harvest as rainy weather dents crop prospects. The average analyst forecast was 1.811 billion bushels. “That’s something real. The rest of this is all speculation on what you think yields will do”. The U.S.D.A. projected 2015 corn production at 13,530 million bus, down 100 million bus from its June projection based on harvested area of 81.1 million acres, down 600,000 acres from June, and average yield of 166.8 bus an acre, unchanged from June.
Corn ending stocks for the 2015/16 crop year will be 1.599 billion bushels USDA said.
August soybeans added 5-3/4 cents to close at $10.32 a bushel after hitting $10.48-1/4, the highest price since the market touched a six-month high last week.
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Its USA forecast for hard red winter wheat, the type most commonly grown in Kansas, is down 2 percent to 866 million bushels. The U.S.D.A. 2016 wheat carryover number was below the average trade expectation of 855 million bus.
