Corn futures were lower in overnight trading after the U.S. Department of Agriculture’s outlook for domestic ending stockpiles came in above trade expectations. The USDA expects corn inventories at the end of the marketing year on Aug. 31 of around 2.17 billion bushels, unchanged month to month. This figure was slightly higher than the forecast of 2.16 billion bushels by analysts polled by Reuters. However, global ending stockpiles were just below forecasts at 319.6 million metric tons, down from the February outlook for 322.1 million and the trade estimate for 329.4 million.
Meanwhile, soybean inventories on Aug. 31 are now projected by the government at 315 million bushels, unchanged from the previous forecast but behind trade expectations compiled by Reuters for 319 million. World stocks are seen at 114.3 million metric tons, USDA said, down from the prior outlook for 116 million, but on par with analyst forecasts. U.S. wheat stockpiles were pegged by the agency at 673 million bushels, up from the previous forecast for 658 million and well ahead of the trade outlook for 657 million bushels. Global wheat inventories at the end of the grain’s marketing year on May 31 are now projected at 258.8 million metric tons, the government said, slightly lower than the February forecast and just behind the 259.1 million seen by analysts.
Corn futures were down 4¢ to $4.35¾ a bushel overnight on the Chicago Board of Trade. Soybean futures for May delivery fell 6¼¢ to $11.77¾ a bushel. Soymeal lost $3.30 to $338.10 a short ton, and soy oil added 0.14¢ to 46.31¢ a pound. Wheat futures for May delivery fell 1½¢ to $5.36¼ a bushel and Kansas City futures dropped 4¢ to $5.84¾ a bushel.
Speculators increased their net short positions, or bets on lower prices, on soybeans in the seven days that ended on March 5, according to data from the Commodity Futures Trading Commission. Investors held a net 160,290 futures contracts in soybeans last week, up from 151,030 contracts a week earlier, marking the largest bearish position since May 2019. Money managers, however, reduced their bearish positions in corn last week, reducing their net longs to 285,580 futures contracts from 287,795 seven days earlier. In wheat, investors lowered their net short positions in hard red winter futures to 39,979 contracts from 41,458 the week prior. Hedge funds and other large investment firms increased their bearish bets on soft red winter wheat to 64,833 contracts from 55,966 the previous week.
