GRAINS-Corn and soybeans leap on smaller-than-expected US harvest
Updates with US settlement prices
By Renee Hickman
CHICAGO, Jan 10 (Reuters) - Chicago soybean and corn futures surged on Friday after the U.S. Department of Agriculture projected lower-than-expected U.S. production after a dry end to the growing season.
The updated crop outlook in a closely watched U.S. government January supply-and-demand report showed tightening corn and soybean supplies, pushing prices to multi-month highs.
The most-active soybean contract Sv1 on the Chicago Board of Trade gained 26-1/4 cents to $10.25-1/4 per bushel, having reached its highest level since Nov. 11. Corn Cv1 rose 14-1/2 cents to $4.70-1/2 a bushel after peaking at its highest since May 15.
CBOT wheat Wv1 was down 3-1/4 cents at $5.30-3/4 a bushel as the USDA estimated winter wheat plantings above trade expectations.
USDA reported soybean production at 4.366 billion bushels, below analyst expectations for 4.453 billion bushels, according to a Reuters poll. The agency slashed its end-of-season stocks projection to 380 million bushels, well below trade expectations for 457 million bushels.
USDA pegged corn production at 14.867 billion bushels, also below analyst expectations for 15.095 billion bushels, with ending stocks at 1.54 billion bushels, below expectations for 1.675 billion bushels.
"No doubt it's a domestic game-changer," said Don Roose, president of U.S. Commodities.
Rising crop prices would help farmers struggling with historically large global soybean supplies swelled by a record crop in Brazil. Tariff threats from U.S. President-elect Donald Trump that could spark retaliation from importers have also hung over the market.
The surges in corn and soybeans came as Chicago soyoil futures extended a rally to a seven-week peak on expectations of U.S. President Joe Biden's outgoing administration releasing short-term guidance on clean fuel tax credits, in a possible boost for domestic soyoil demand.
(Reporting by Renee Hickman in Chicago; Additonal reporting by Ella Cao and Mei Mei Chu in Beijing and Gus Trompiz in Paris; Editing by Rod Nickel)
((renee.hickman@thomsonreuters.com))
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