Chicago agriculture commodities rebound on USDA monthly report

Chicago Board of Trade (CBOT) corn, wheat and soybeans all rebounded sharply on Tuesday as the United States Department of Agriculture's (USDA) Monthly Report showed lower-than-expected products.

The most active corn contract for March delivery added 5 cents, or 1.42 percent, to settle at 3.5675 U.S. dollars per bushel. March wheat delivery advanced 12.25 cents, or 2.61 percent, to close at 4.8125 dollars per bushel. March soybeans rose 13.25 cents, or 1.54 percent, to close at 8.745 dollars per bushel.

USDA released its January World Agriculture Supply and Demand Estimates (WASDE) report on Tuesday, saying that wheat seed use was lowered 6 million bushels on the winter wheat planted area, while U.S. supplies for 2015/16 were lowered 6 million bushels.

Additionally, the WASDE report said that U.S. farmers sowed 36.61 million acres of winter-wheat varieties, which the analysts noted was less than the lowest estimate in a Bloomberg survey of analyst and would be the lowest since 2010.

As for the corn, the U.S. harvested area were raised slightly, but the national average yield was estimated 0.9 bushel per acre lower than the previous forecast, and corn production for 2015/16 was estimated 53 million bushels lower.

Soybean production was estimated by USDA at 3,930 million bushels, down 51 million on lower harvested area and yields. Harvested area was estimated at 81.8 million acres, down 0.6 million from the previous forecast, while yield was estimated at 48.0 bushels per acre, down 0.3 bushels.

Additionally, the USDA said Tuesday morning that private exporters reported 140,000 tons of soybeans for delivery to unknown destinations during the 2015/2016 marketing year, analysts noted that this data was also good for soybeans on Tuesday. Endit