US wheat futures rebounded on Wednesday, after a government report showed that wheat production was less than traders had expected. Meanwhile, corn futures lost ground, after the US Department of Agriculture’s quarterly grain stocks report showed that both corn and soyabean supplies were plentiful and US farmers are harvesting what is expected to be yet another bumper crop for both. Soyabeans futures closed higher after a choppy session, supported by a smaller-than-expected US domestic stocks figure.
“You had the best report in the wheat, thanks to the wheat production number finally falling,” said Mike Zuzolo, president of Global Commodity Analytics, adding, “Wheat should garner most of the support, as long as the dollar remains contained.” The USDA reported on Wednesday that wheat production totaled 2.052 billion bushels, below the average trade estimate of 2.133 billion bushels. The agency also reported that production of spring wheat other than durum came in at 599 million bushels, below the average trade estimate of 625 million bushels.
The USDA said that US corn stocks as of September 1 totaled 1.731 billion bushels, the biggest September 1 figure in nine years. Soyabean stocks, meanwhile, stood at 191 million bushels, a four-year high. USDA also reported wheat stocks of 2.089 billion bushels as of September 1, up from 1.907 billion bushels a year earlier. Analysts on average had expected wheat stocks of 2.149 billion bushels. The corn and bean stocks were also slightly below expectations.
The news had Minneapolis spring wheat futures bouncing, said Hoops, who also noted that the bump in wheat helped pull up Chicago Board of Trade soyabean futures off the day’s lows. CBOT November soyabeans closed up 7-3/4 cents, or 1 percent, at $8.92 a bushel on Wednesday. December corn closed down 1-1/4 cents, or 0.1 percent, to $3.87-3/4 a bushel, while wheat closed up 9 cents, or 1.9 percent, at $5.12-3/4.