U.S. wheat, corn, soybeans move higher despite USDA data

Chicago Board of Trade (CBOT) wheat, corn and soybeans futures closed higher Tuesday, though the U.S. government raised its outlook for global major crop stocks.

The most active corn contract for May delivery rallied 6 cents, or 1.68 percent, to 3.6275 dollars per bushel. Wheat for May delivery added 5.25 cents, or 1.17 percent, to 4.525 U.S. dollars per bushel. May soybeans delivery gained 8 cents, or 0.86 percent, to 9.3625 dollars per bushel.

In its monthly World Agricultural Supply and Demand Estimates report for April released Tuesday, the U.S. Department of Agriculture(USDA) raised its estimates for world wheat stocks for 2015/16 marketing year by 1.7 million tons from last month's projection.

Meanwhile, domestic wheat ending stocks at the end of 2015/16 marketing year would be 976 million bushels, up 10 million bushels from its March outlook, the report said. It will be the largest ending stocks since 1987.

Global corn ending stocks for 2015/16 marketing year also rose 1.9 million tons from the March estimate, the report showed.

Outlook for U.S. soybean exports increased 15 million bushels to 1.705 billion, which reflected a strong soybean demand led by China and several other countries. Meanwhile, U.S. soybean ending stocks were cut 15 million bushels from last month.

The report, which is a little bullish for soybeans, is largely in line with the market's expectation, analysts said.

Meanwhile, news that winter crops in Brazil, another key exporter, could be damaged severely due to ongoing dry weather, also gave the market an upward jolt, analysts said. Endit