By Tom Polansek
CHICAGO, Aug 12 (Reuters) – Chicago Board of Commerce wheat futures climbed to a three-month excessive on Thursday after the U.S. Division of Agriculture slashed manufacturing estimates in exporting international locations.
Corn futures set a one-month excessive on a smaller-than-expected U.S. yield forecast in a USDA crop report that fueled considerations about tightening world grain provides because of harsh climate.
The month-to-month report lower the U.S. authorities’s estimates for wheat harvests by about 24% in Canada from July and 15% in Russia because of scorching, dry circumstances.
Drought additionally hampered U.S. wheat manufacturing, which was forecast at a 19-year low, 2.8% beneath the federal government’s July forecast.
The USDA “took every part out of Russian and Canada on wheat you would ask for and extra,” mentioned Charlie Sernatinger, analyst for ED&F Man Capital.
Analyst agency Strategie Grains individually trimmed its European Union comfortable wheat manufacturing forecast by 1%.
Essentially the most-active wheat contract Wv1 closed 26-1/2 cents larger at $7.53-1/2 bushel and reached its highest worth since Could 7 at $7.62. On Paris-based Euronext, wheat futures set contract highs.
CBOT corn Cv1 ended up 14 cents at $5.73 -1/Four a bushel and touched its highest worth since July 2. Soybeans Sv1 rose 1 cent to $13.41 per bushel.
The USDA estimated U.S. farmers will harvest 14.750 billion bushels of corn, with a median yield of 174.6 bushels per acre, and 4.339 billion bushels of soybeans, with a median yield of 50.zero bushels. The corn crop estimate was down 2.7% from July and the soy crop estimate was 1.5% decrease.
Analysts had been anticipating the USDA to peg corn manufacturing at 15.004 billion bushels, with a median yield of 177.6 bushels per acre, and soybean manufacturing at 4.375 billion bushels, with a yield of 50.Four bushels.
“For corn, we’re a reasonably tight carry-over,” mentioned Ted Seifried, chief ag strategist for Zaner Group. “However now we have to marvel which means we go from right here with crop circumstances bettering.”
(Reporting by Tom Polansek in Chicago, Gus Trompiz in Paris and Naveen Thukral in Singapore; Modifying by Ramakrishnan M, Anil D’Silva and Alexander Smith)
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