Futures jump higher on big cuts to U.S. corn, soybean and wheat crops

Crop futures are up sharply Thursday morning, driven higher by a bullish USDDA report that cut expected corn and soybean production more than expected.

November canola was trading at $548.20 per tonne at 9:30 am CST, up $7.50.

USDA’s corn estimate at 12.914 billion bushels was one percent smaller than traders expected and the soybean crop, 3.056 billion bu. was four percent below trade expectations.

The impact of the corn crop downgrade was offset slightly by an increase in the expected corn carryout at the end of the U.S. crop year Aug. 31 to 940 million bu. compared to expectations of 922 million bu. The USDA said recent high prices reduced ethanol and export demand.

However, USDA forecast the carryout at the end of the next crop year will fall to 714 million bu., five percent less than what traders had expected.

USDA also reported on a resurvey of seeded acreage conducted to take account of the wet spring seeding season that prevented planting in some cases.

It said durum acreage was 15 percent less than the earlier forecast and spring wheat was seven percent less.

USDA now puts spring wheat acreage at 12,677 million acres, down from 13.627 million on June 30, a decline of 950,000.

Durum area is 1.398 million, down 300,000 from the June 30 number of 1.698 million.

Spring wheat production was pegged at 522 million bu., down from the average guess of 541 million and durum at 57.1 million bu., off estimates of 61 million.

Winnipeg (per tonne)

Canola Nov 11 $548.20, up $7.50 (+1.39%)

Canola Jan 12 $555.90, up $7.00 (+1.28%)

Canola Mar 12 $562.00, up $7.70 (+1.39%)

Canola May 12 $566.20, up $7.80 (+1.40%)

Western Barley Oct 11 $205.00 unchanged

Chicago (per bushel)

Soybeans Aug 11 $13.38-2, up 37.5 cents (+2.88%)

Soybeans Sep 11 $13.2575, up 30.25 (+2.34%)

Soybeans Nov 11 $13.3275, up 31.25 (+2.40%)

Corn Sep 11 $7.0225, up 24.25 (+3.58%)

Corn Dec 11 $7.13, up 24.5 (+3.56%)