The most active corn contract for December delivery fell 17.75 cents, or 3.54 percent, to settle at 4.8375 U.S. dollars per bushel. September wheat plunged 27.75 cents, or 4.2 percent, to settle at 6.3275 dollars per bushel. November soybean lost 32.5 cents, or 2.39 percent, to settle at 13.2775 dollars per bushel.
CBOT grain futures were sharply lower following a bearish U.S. Department of Agriculture (USDA) July crop and World Agricultural Supply and Demand Estimate (WASDE) report. The report cut U.S. corn yield by 4 bushels to 177.5 bushels per acre (BPA) due to record drought in May and June, held soybean yield at trend at 52 BPA, and expected better than forecast U.S. wheat yield at 46.1 BPA.
The report estimated 2022-2023 U.S. corn end stocks at 1,402 million bushels, a drop of 50 million bushels due to an expanded consumption of U.S. corn feed residual to 5,425 million bushels, a cut in exports to 1,650 million bushels, and a cut in ethanol usage to 5,225 million bushels. The 2023-2024 U.S. corn end stocks were expected to be 2,262 million bushels.
World 2023-2024 corn end stocks rose to 314 million metric tons, unchanged from June. The 2023 Brazilian corn crop was raised by one million metric tons to 133 million metric tons, while Argentine crop was cut by one million metric tons to 34 million metric tons.
U.S. 2022-2023 soybean end stocks were raised by 25 million bushels to 255 million bushels, due to a 20-million-bushels reduction in exports, and a 5-million-bushel increase in imports.
U.S. 2023-2024 soybean end stocks fell 50 million bushels to 300 million bushels due to an export cut of 125 million bushels to 1,850 million bushels and a 10-million-bushel cut in crush to 2,300 million bushels.
World soybean end stocks were forecast at 121 million metric tons, a decline of 2.3 million metric tons from June.
U.S. all wheat production was lifted 74 million bushels. Feed use was increased 20 million bushels. U.S. 2023-2024 end stocks were pegged at 592 million bushels, an increase of 12 million bushels from 2022-2023.
World 2023-2024 wheat end stocks were at 266.5 million metric tons. Total exporter production in 2023-2024 was lowered 4 million metric tons from June, with larger U.S. output unable to offset a combined reduction of 6.5 million metric tons in Europe, Canada and Argentina.
Overall Chicago-based research company AgResource stays bullish of wheat and soybean futures in the long run as warmer and drier weather is probable for Central U.S. in the second half of July, holding strong support for November soybean futures below 13.00 dollars.
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