Chicago Grains End Lower Following USDA Report

12/10/16 -- Soycomplex: Beans closed lower. The USDA put the national average yield at 51.4 bu/acre, up 0.8 bu/acre from last month but slightly lower than the average trade guess of 51.5 bu/acre. It was also not as high as some pundits had been predicting, with 53.0-53.5 bu/acre getting a mention in some quarters. Brazil's crop was upped from 101 MMT to 102 MMT, Argentina's was left unchanged at 57 MMT. China's import needs were also unaltered at 86 MMT. Global 2016/17 ending stocks were however raised more than 5 MMT to 77.4 MMT. Nov 16 Soybeans settled at $9.45 1/2, down 8 3/4 cents; Jan 17 Soybeans settled at $9.53 1/2, down 8 1/4 cents; Oct 16 Soybean Meal settled at $294.50, down $3.10; Oct 16 Soybean Oil settled at 33.14, down 2 points.

Corn: The market closed with sharp losses. The USDA came out with 2016 US corn production at 15.057 billion bushels and yields of 173.4 bu/acre. Both were pretty much exactly what the trade had been expecting. US 2016/17 ending stocks were estimated at 2.32 billion bu. On a global level the world 2016/17 crop was lowered 1 MMT to 1026 MMT, with ending stocks down from 219.5 MMT to 216.8 MMT. US 2016/17 exports were raised 1.5 MMT to 56.5 MMT and Brazil's were upped 1 MMT to 21 MMT. The usual Wednesday weekly ethanol production data is delayed a day until tomorrow. Brazilian full season corn planting is reported at 38% done, some 15 points lower than at this time last year. A hard freeze warning is in place for the WCB tonight, but should come too late in the season to cause much damage. Dec 16 Corn settled at $3.37, down 8 1/2 cents; Mar 17 Corn settled at $3.47, down 8 1/4 cents.

Wheat: The wheat market closed lower across the three exchanges, with Chicago wheat the hardest hit. "Global production in 2016/17 is lowered slightly but remains a record. Larger crops in Australia, Brazil, and Canada are more than offset by cuts in the EU and the United States," the USDA said. US 2016/17 ending stocks were estimated at 1.138 billion bu (trade estimates were between 1.050 and 1.400 billion bu). US exports in 2016/17 were raised 0.5 MMT to 26 MMT due to the strong early-season pace of sales and shipments. Australian and Canadian production and exports were also raised. Russia was left unchanged on both fronts. Russia said that it exported 3.655 MMT of wheat in September, up 20% on August, despite problems with shipments to Egypt. The USDA today lowered Egypt's imports a little, down from 12.2 MMT to 11.8 MMT. Dec 16 CBOT Wheat settled at $3.96 3/4, down 10 1/2 cents; Dec 16 KCBT Wheat settled at $3.98 1/2, down 7 3/4 cents; Dec 16 MGEX Wheat settled at $5.21 3/4, down 2 1/2 cents.