CHICAGO, July 11 (Xinhua) — Chicago Board of Trade (CBOT) wheat futures climbed more than three percent on Thursday, after the U.S. Department of Agriculture (USDA) significantly lowered forecasts for wheat supplies and ending stocks.
In the July supply and demand report released on Thursday, the outlook for 2019/20 U.S. wheat is for lower supplies, higher domestic use, larger exports, and reduced stocks.
Ending stocks for 2019/20 U.S. wheat are projected 72 million bushels lower than last month at 1,000 million bushels.
Foreign wheat supplies are pegged at 10.5 million tons for 2019/20 marketing year, primarily on lower production in several major wheat exporters, such as Russia, Ukraine and EU countries.
Global 2019/20 wheat exports are lowered 2.3 million tons on decreased supplies and world ending stocks are reduced 7.9 million tons to 286.5 million.
The adjusted data boosted CBOT wheat prices. The most active wheat contract for September went up 16.75 cents, or 3.32 percent, to settle at 5.215 U.S. dollars per bushel.
The USDA this month also lowered U.S. soybean supply and use projections for 2019/20, which include lower beginning stocks, production, exports, and ending stocks.
U.S. soybean exports are reduced 75 million bushels to 1.875 billion, reflecting reduced supplies and increased competition from South American exporters.
At the end of the session, the most active November soybean futures were up 4.5 cents, or 0.49 percent to 9.1725 dollars per bushel.
CBOT corn futures also posted gains, despite forecasts for larger U.S. production and increased ending stocks. The December corn was up 8.5 cents, or 1.93 percent to 4.48 dollars per bushel. Enditem