The most active corn contract for July delivery closed 12 cents higher, or 2.89 percent at 4.2775 U.S. dollars per bushel. July wheat was up 10 cents, or 2.07 percent to 5.18 dollars per bushel. July soybeans were up 0.75 cent, or 0.09 percent to 8.5925 dollars per bushel.
The U.S. Department of Agriculture (USDA) released on Tuesday its Monthly report on supply and demand estimates. U.S. corn production for 2019/20 is forecast to decline 1.4 billion bushels to 13.7 billion, which if realized would be the lowest since 2015/16, according to the June report.
With supplies falling more than use, ending stocks are projected to decline 810 million bushels to 1.7 billion, which if realized would be the lowest since 2013/14, the report added.
The sharply lowered estimates triggered a double-digit rally in CBOT corn futures, said market watchers.
In the same report, the USDA also lowered ending wheat stocks by 69 million bushels to 1,072 million, which gave some support to CBOT wheat prices.
Although adverse weather has significantly slowed U.S. soybean planting progress this year, area and production forecasts are unchanged in the USDA report. Enditem
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