Chicago Close: Corn Rises on Heavier Old-Crop Demand

Corn futures ended higher on Thursday as the USDA raised old-crop demand estimates in its monthly supply-demand update. Wheat also ended with gains while soybeans were mixed.

The USDA lowered its 2020-21 corn ending stocks estimate by 150 million bu from last month to 1.107 billion, the result of upward revisions in exports and corn for ethanol use. The decline in old-crop ending stocks, which was carried through to the new-crop supply-demand estimates as well, was steeper than expected by analysts. July corn gained 8 ¼ cents to $6.99 and December was up 6 ¾ cents to $6.16 ½.

Wheat was higher as the USDA revised its old-crop export forecast higher from last month amid strong international demand. New-crop production was revised higher, thanks to a larger winter wheat crop estimate, although 2021-22 ending stocks were still revised slightly lower. Larger gains in the Minneapolis spring wheat futures were due to drought worries on the northern Plains. July Chicago wheat was up 1 ½ cents at $6.83 ¾, July Kansas City gained 4 ½ cents to $6.40 ¼ and July Minneapolis added 11 ¼ cents to $7.75 ½.

The nearby July soybean future fell on a downward revision in the old-crop crush estimate, which raised ending stocks a bit more than expected. However, the new-crop November contract still rallied. July beans were down 18 ½ cents at $15.44 and November was up 11 ¼ cents at $14.59 ½.

Source: DePutter Publishing Ltd.

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