Grain and oilseed futures markets rose sharply this morning following the release of a U.S. Department of Agriculture report that surprised traders by reducing the estimated size of the U.S. soybean crop.The USDA also lowered the size of the U.S. corn crop, which was expected.Most active January canola was up $14.30 per tonne to $564.50 in the morning, following on the coattails of soybeans.The report lowered the U.S. soybean yield forecast to 43.9 bushels per acre, down from an October outlook for 44.4 and below the average analyst estimate for 44.7.The USDA said 3.375 billion bu. of soybeans were produced, still a record but down one percent from its October forecast.The USDA raised its export forecast, as expected, and cut ending stocks to 185 million bu., much tighter than what traders had expected.It also cut the U.S. corn crop for the third consecutive report, pegging it at 12.54 billion bu., down one percent due to disappointing yields.It put year end corn stocks at 827 million bu., the lowest in 15 years and only three weeks of supply. The department also trimmed its estimate of the U.S. wheat harvest by one percent to 2.208 billion bu. following a resurvey of durum and spring wheat growers. It lowered its forecast for ending stocks to 848 million bu., compared with trade expectations of 855 million bu. The Canadian dollar is trading at parity with its U.S. counterpart this morning.World crop prospects were little changed in the report, with the reductions in the U.S. offset by improved outlooks in South America.
USDA cuts soy crop forecast, surprises market
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