Chicago wheat, corn, soybean down on high supply outlook

Chicago Board of Trade (CBOT) corn, soybeans and wheat futures closed lower Wednesday after the U.S. Department of Agriculture (USDA) projected higher-than-expected domestic supplies in its monthly supply-and-demand report.

The most active corn contract for July delivery lost 7.75 cents, or 2.12 percent, to close at 3.5725 U.S. dollars per bushel. July wheat delivery shed 18.75 cents, or 3.52 percent, to close at 5. 135 dollars per bushel. July soybeans fell 2 cents, or 0.21 percent, to close at 9.495 dollars per bushel.

In its monthly report, USDA raised its outlook for raised its estimate of global wheat supplies for 2015/16 market year by 2.1 million tons, pressurizing wheat futures. Meanwhile, growing prospect for much-needed rain in the European Union and Canadian wheat areas also put more pressure on wheat.

"One of the surprises of the report was the finding of 5 million metric tons (MMTs) of world corn stocks in 2014/15 which raised stocks to their 2nd highest level on record at 197 MMTs. Record large world corn stocks were achieved in 1986 at 204.8 MMTs, " said AgResource company, a Chicago-based agricultural research institute.

Soybean stockpiles were at 9-years high although the report forecast increased crush and lower stocks for both 2014/15 and 2015/16. USDA also raised outlook for corn stocks in the report.

The weekly ethanol production report released by the U.S. Energy Information Administration on Wednesday showed a moderate gain in production, somewhat supporting corn futures. U.S. ethanol production through the week ending June 5 was up 2 percent to 992, 000 barrels per day. Endite