The most active corn contract for July delivery rose 3 cents, or 0.38 percent, to settle at 7.915 U.S. dollars per bushel. July wheat soared 65.75 cents, or 5.91 percent, to settle at 11.7875 dollars per bushel. July soybean gained 7 cents, or 0.44 percent, to settle at 16.1375 dollars per bushel.
CBOT futures were sharply higher following a bullish U.S. Department of Agriculture (USDA) May Crop Report that highlighted the yield and supply risks heading into the summer growing season.
The World Agricultural Supply and Demand Estimate (WASDE) report estimated the 2022 U.S. corn crop at 14,460 million bushels, 655 million bushels less than last year due to reduced seeding. The USDA estimated U.S. corn seeding at 89.5 million acres back on March 31 with harvested acres of 81.7 million acres.
The WASDE report estimated 2022-2023 U.S. corn demand at 14,565 million bushels, down 370 million bushels. The report cut 2022-2023 U.S. corn export by 100 million bushels to 2,400 million bushels and reduced feed/residual by 275 million bushels to 5,350 million bushels. U.S. corn ethanol was left unchanged from the current crop year at 5,375 million bushels amid the high price of crude oil and record large U.S. gasoline demand. 2022-2023 U.S. corn end stocks were forecast at 1,360 million bushels.
U.S. 2022-2023 soybean end stocks were forecast at 310 million bushels. The WASDE report forecast the U.S. soybean crop at a record large 4,640 million bushels.
The WASDE report estimated 2022-2023 U.S. soybean demand at a record large 4,580 million bushels with export pegged at 2,200 million bushels and crush at 2,255 million bushels. China is forecast to import 99 million metric tons of old and 92 million metric tons of new crop soybeans in the current crop year.
The USDA estimated the 2022 U.S. all wheat crop at 1,729 million bushels. This year's wheat harvest is forecast to be 83 million bushels larger than last year.
The report estimated 2022-2023 U.S. wheat end stocks at 619 million bushels, down 36 million bushels from last year. 2022-2023 U.S. wheat exports were forecast at 775 million bushels, a multi-decade low and down 30 million bushels from the current crop year. U.S. wheat feed/residual use was cut by 20 million bushels from the current crop year to just 80 million bushels. U.S. wheat milling demand held steady at 764 million bushels. Total U.S. 2022-2023 wheat use was forecast at 1,885 million bushels, down 46 million bushels. Russia is forecast to export 39 million metric tons, Ukraine 10 million metric tons, and India 8.5 million metric tons.
Chicago-based research company AgResource sees May WASDE report as confirming limited downside CBOT price risks with a need for weather adversity for December corn and November soybean to rise to new highs. Wheat prices will follow EU weather into June.
Weather forecast shows there is too much rain for Northern Plains and the Northwest Midwest into May 22.
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