Roundup: CBOT corn, soybeans surge on low acreage forecast

CHICAGO, March 30 (Xinhua) -- Chicago Board of Trade (CBOT) grain futures closed mixed over the trading week which ended March 29, with the corn and soybean prices soaring by double digits due to surprisingly lowered planting expectations.

During the shortened trading week because of the Good Friday holiday, the most active corn contract for May delivery rose 10.5 cents, or 2.78 percent, to 3.8775 dollars per bushel. May wheat delivery lost 9.25 cents weekly, or 2.01 percent, to 4.51 dollars per bushel. May soybeans went up 16.5 cents weekly, or 1.60 percent, to 10.4475 dollars per bushel.

Earlier this week, funds trimmed their market exposure ahead of Thursday's report by the U.S. Department of Agriculture (USDA) on stocks and seeding, the most important one of the first quarter as it would set the stage for CBOT price action into early summer.

Meanwhile, funds cut their market length as it was moving toward the end of the month and the first quarter. That net long position reduction also led to pressure on CBOT futures.

To most analysts' surprise, the USDA on Thursday lowered the prospective planting outlook for corn and soybeans, which contradicted with the previous expectations of the trade.

The USDA said in the report that corn planted area for all purposes in 2018 is estimated at 88 million acres, down two percent or 2.14 million acres from last year.

As for soybeans, planted area for 2018 is estimated at 89.0 million acres, down one percent from last year.

The acreage declines, despite large stocks, prompted 2 percent to 4 percent rise of corn and soybean prices before they settled on Thursday.

The market trend of soybeans, however, is more complicated when taking the trade disputes between the United States and China into consideration.

U.S. President Donald Trump signed a memorandum that could impose tariffs on up to 60 billion U.S. dollars of imports from China, a move that would probably draw retaliation from China.

The American Soybean Association immediately expressed its "significant concern" about the potential for China to retaliate against U.S. soybeans as China is the largest buyer of U.S. soybeans, consuming nearly one third of U.S. production worth 14 billion U.S. dollars annually.

Traders have been following the development closely with the hope that negotiations between the two economic powers could solve their disputes and avoid a trade war which might also hurt the U.S. agricultural sector.

In the past week, CBOT wheat saw a two percent loss due to the rainfall in the mid-south plains and increased planting estimates.

Rain fell in Kansas, Oklahoma and Texas, expected to ease the dryness and improve wheat conditions there.

The USDA planting estimates released on Thursday reported a three-percentage increase for all wheat crops, thus further dragging down CBOT wheat prices, which have so far suffered losses for four trading weeks in a row. Enditem