CBOT Grains Climb - Led By Corn

09/02/11 -- Corn: Corn led the entire complex higher today after the USDA slashed US ending stocks by far more than the trade had been anticipating driving front month March above USD7/bushel for the first time in more than 30 months. The USDA lopped 70 million bushels off US 2010/11 carryout to 675 million, over 50 million below what the trade had been expecting. That places US corn stocks to use at 5%, the lowest since 1936/37. World corn ending stocks were also cut from 127 MMT last month to 122.5 MMT, in itself a 37-year low. Profit taking led March to close just below USD7/bushel by the close of play, but it still finished 24 1/4c higher on the day.

Soybeans: Although the USDA report was neutral for beans, they followed corn higher to close the session around 17-19c firmer. South American production was left unchanged by virtue of an increase in output of 1 MMT from Brazil being matched by a reduction of 1 MMT for Argentina. US 2010/11 ending stocks were also seen unchanged, a tad better than the 5 million bushel reduction that the trade had expected. World ending stocks were lowered slightly from 58.28 MMT to 58.21 MMT. Assorted private estimates peg Brazilian soybean production 1-2 MMT higher than the USDA's 68.5 MMT figure today, local firm Agroconsult report some "unbelievable" yields in early harvested beans in Mato Grosso.

Wheat: Wheat was also a follower like beans, with CBOT rising around 12-14c on the day, KCBT was up around 15-16c and MGEX around 16-18c higher. As with soybeans the wheat numbers were largely neutral. US ending stocks were left unchanged, contrary to expectations for a small reduction, and world wheat stocks fell only marginally. Talk of potential damage to Chinese winter wheat added underlying support, so too did ideas that US wheat is now starting to pick up some victories amongst the many international tenders kicking around at the moment. US wheat got some snow cover this week, but more is needed to make up for winter moisture deficits.