Grain and oilseed futures fell sharply Tuesday morning after the U.S. Department of Agriculture released reports that showed grain supplies are larger than expected.
USDA increased its estimates of crop size and year-end stocks.
At 10.30 a.m. CST, Chicago March soybeans were down 32.5 cents US per bushel from the previous day’s close. Chicago March corn was down 30 cents per bu. and wheat was down 33.5 cents per bu.
Winnipeg canola futures were pulled down by the drop in American futures. At 10.30 a.m. CST, Winnipeg March canola was trading at $386.40 Cdn per tonne, down $6.90 from Monday’s close.
The lightly traded Winnipeg barley contract had not reacted to the reports.
USDA put 2009 U.S. corn production at a record 13.151 billion bu., above the average estimate of 12.821 billion bu.
U.S. 2009-10 corn ending stocks were raised to 1.764 billion bu., above an average estimate of 1.587 billion bu.
U.S. soybean production was set at a record 3.361 billion bu., above the average trade estimate of 3.338 billion bu.
U.S. soy stocks for the end of 2009-10 were set at 245 million bu., above an average estimate of 235 million bu.
The USDA also raised 2009-10 global soybean ending stocks to 59.8 million tonnes from 57.1 million tonnes.
Part of the increase was due to a larger forecast for Brazil’s 2009-10 soybean crop, which was raised to 65 million tonnes from 63 million tonnes in December.
U.S. wheat ending stocks for 2009-10 were estimated at 976 million bu., above the average trade estimate of 914 million bu.
It also raised its estimate of 2009-10 world wheat ending stocks to 195.6 million tonnes from 190.9 million tonnes in December.
The only positive number for prices was U.S. winter wheat seeding intentions, which was sharply below estimates and supported 2010 new crop wheat futures. It put winter wheat seedings at 37.097 million acres, down 14 percent from 2009 and below the average analyst estimates of 40.501 million acres.
