U.S. grains: Chicago grain, soy futures drop after USDA forecasts
China buys over one million tonnes of U.S. soy
| 2 min read

CBOT December 2023 corn with 20-, 50- and 100-day moving averages. (Barchart)
Chicago | Reuters — The Chicago Board of Trade’s most-active corn futures plunged sharply on Thursday after the government reported that U.S. farmers will produce the biggest-ever corn crop this year.
The report’s forecast topped trade estimates. The most-active CBOT corn contract at one point dipped to $4.66-1/2, the lowest price since Dec. 30, 2020, before inching back up (all figures US$).
Meanwhile, soybean futures slumped after the world agricultural supply and demand estimates (WASDE) report forecast that the global soybean stocks by the end of this season will be the largest on record.
Brazil’s crop agency, Conab, also raised its forecast of the South American country’s 2023-24 soybean crop to 162.42 million metric tonnes, from the previous 162.003 million, despite stressful hot and dry weather in key areas.
And soybean futures faced pressure as traders booked profits a day after the benchmark January contract hit its highest price in nearly two months.
The sell-off occurred despite confirmation from the U.S. Department of Agriculture (USDA) that exporters sold 1.7 million tonnes of U.S. soybeans in the last day, including more than one million tonnes to China, extending a wave of recent export deals.
Reuters reported on Wednesday that China had bought at least 300,000 tonnes of soybeans.
“And I’d think they (USDA) would have had that information in hand when they went into lock-up this morning,” said Rich Nelson, chief strategist at Allendale.
Wheat futures extended losses on a strengthening U.S. dollar and the WASDE report’s indication of larger global supplies, decreased domestic use and higher ending stocks.
The most-active CBOT soybean contract settled down 22-1/4 cents at $13.43-1/2 a bushel. CBOT corn settled down eight cents at $4.68 a bushel, while wheat closed down 11-1/2 cents at $5.80-3/4 a bushel.
— Reporting for Reuters by Brendan O’Brien in Chicago; additional reporting by Julie Ingwersen, P.J. Huffstutter and Karl Plume in Chicago.